Final answer:
To qualify as an outlier in rent, the value would have to be more than $1,516 or less than $154, as these represent rents more than 3 standard deviations away from the mean rent of $835.
Step-by-step explanation:
In statistics, an outlier is a data point that differs significantly from other observations. A common rule to identify outliers is to consider any data point more than 1.5 times the interquartile range (IQR) above the third quartile or below the first quartile as an outlier. However, in the context of z-scores, which measure how many standard deviations an element is from the mean, outliers can also be defined differently.
Since the standard deviation of the monthly rent is $227 and the mean is $835, we can calculate the range of values that would qualify as outliers using the z-score. Typically, a z-score of over 3 or below -3 is considered an outlier. Thus, to be an outlier, the rent would have to be:
These calculations give us the rent values that would qualify as outliers on either end of the distribution.