Question

Explain the circumstances for which the interquartile range is the preferred measure of dispersion. What is the advantage that the standard deviation has over the interquartile range?

Answer 1

• Interquartile range is preferred when the distribution of data is highly skewed or contains extreme observations. When the data are skewed or have outliers then Interquartile range is the preferred measure of dispersion.

•  An advantage of standard deviation takes all data into consideration. It uses all the observations in its computation. So, this is the advantage that the standard deviation has over the Interquartile range.

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