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The store that charged $545 for a tire in Example 3 had a sale and lowered its price to $399. Is the new price an upper outlier?

A. Yes

B. No

1 Answer

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Final answer:

Without the complete dataset of tire prices including the new price of $399, we cannot confirm if it is an upper outlier. An outlier is usually determined by calculating the interquartile range (IQR) and setting a range for potential outliers, which requires more data.

Step-by-step explanation:

To determine if the new tire price of $399 is an upper outlier, we would need to have the complete dataset of tire prices including this new value. However, given the context of the question and without additional data, it is not possible to calculate if the price is an outlier. Typically, an outlier in a set of data is a value that is significantly higher or lower than the majority of the values. To determine if a value is an outlier, one usually calculates the interquartile range (IQR) and then establishes a range for potential outliers (for example, 1.5 times the IQR above the third quartile or below the first quartile).

In the absence of specific data to calculate these metrics, we cannot confidently answer if the new price is an upper outlier. More detailed data on the distribution of tire prices would be needed, including measures of central tendency and dispersion, such as mean, median, standard deviation, and the interquartile range to accurately answer this question.

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