Measures of Position

When data is arranged in ascending or descending order, it can be divided into various
equal parts by different values such as quartiles, deciles and percentiles. These values are
collectively called quantiles or fractiles and are the extensions of the median which divides the
data into two equal parts.

1. Quartile is obtained by dividing the set of data into four equal parts.

Q1 is the lower quartile which contains the lowest 25% of the data.
Q2 is the median which divides the data into two equal parts.
Q3 is the third quartile which contains the upper 25% of the data.

Quartiles provide alternative measures of variation (or dispersion). The Interquartile Range (IR
or IQR) is the difference between the third and first quartiles (that is, IQR = Q 3 – Q1). The Quartile
𝑄 −𝑄 𝐼𝑄𝑅
Deviation (QD) is simply the half of the IQR (that is, 𝑄𝐷 = 3 1 = ).
2 2

2. Decile is any of the nine quantiles (D1, D2, D3, …, D9) obtained by dividing the set of data into ten
equal parts. D5 is equivalent to the median.

3. Percentile is a measure of position made by dividing the data set into 100 equal parts (P1, P2, P3,
…, P99). Percentiles P25 and P75 are the first and third quartiles, respectively, while P50 is D5 and
the median.

Quartiles are useful in visualizing the linear distribution of a data. An effective way of looking at how
the data are distributed with respect to the central value is through a boxplot. While a histogram or a
frequency curve may exhibit the data according to frequencies, a boxplot simply shows where the bulk of
the scores are located, as projected in a single dimension. Simply put, a boxplot is the top view of the
frequency curve.
 A modified boxplot gives more details on location of data points by looking at the possibility of
having outliers in the data set. The “minimum” value is determined by subtracting the value (1.5)(IQR)
from Q1 while the “maximum” value is obtained by adding the same value to Q3. If the “minimum” is less
than the lowest value (or the “maximum” is greater than the highest value), then there are no outliers in
the data. Otherwise, any value that is between the lowest value and the “minimum” value (or between the
“maximum” value and the highest value) is considered an outlier, and can be removed in the data set.

Finding the Quantiles

The general formula for any quantile of the ungrouped data {𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 } is

𝑞𝑘 = 𝑥𝐿 + (𝑥𝐿+1 − 𝑥𝐿 )𝑑
𝑘(𝑛+1)
where 𝐿 = ⌊ 𝑟 ⌋ for r = 4 (for quartiles), r = 10 (for deciles), r = 100 (for percentiles), and 𝑑 is
the decimal residue of 𝐿.
The first step in finding the quantile of a data is to arrange the data set in ether
increasing or decreasing order. Then solve for the locator 𝐿 of the quantile. Then apply the
formula on the assumption that the particular quantile is between the 𝐿𝑡ℎ (or 𝑥𝐿 ) and the
(𝐿 + 1)𝑡ℎ (or 𝑥𝐿+1 ) values.

Example:
The Forbes magazine publishes annually a list of the world’s wealthiest individuals. For
2007, the net worth of the 20 richest individuals, in billion of dollars, is as follows:
18, 18, 18, 18, 19, 20, 20, 20, 21, 22, 22, 23, 24, 26, 27, 32, 33, 49, 52, 56
Find Q1, D7, P84 and interpret.

Solution:
For Q1:
𝑘(𝑛+1) (1)(21)
Locator: 𝐿 = 4 = 4 = 5.25 ==> Q1 is between x5 and x6
Solve for Q1: 𝑄1 = 𝑥5 + (𝑥6 − 𝑥5 )𝑑 = 19 + (20 − 19)(0.25) = 19.25
Interpretation:
25% of the world’s richest individuals have net worth of less than $19.25B, or
75% of the world’s richest individuals have net worth of more than $19.25B.
For D7:
𝑘(𝑛+1) 7(21)
Locator: 𝐿 = 10 = 10 = 14.7
𝐷7 = 𝑥14 + (𝑥15 − 𝑥14 )𝑑 = 26 + (27 − 26)(0.7) = 26.7

Interpretation:
70% of the world’s richest individuals have net worth of less than $26.7B, or
30% of the world’s richest individuals have net worth of ore than $26.7B
For P84:
𝑘(𝑛+1) 84(21)
Locator: 𝐿 = 100 = 100 = 17.64
𝑃84 = 𝑥17 + (𝑥18 − 𝑥17 )𝑑 = 33 + (49 − 33)(0.64) = 43.24
Interpretation:
84% of the world’s richest individuals have net worth of less than $43.24B, or
16% of the world’s richest individuals have net worth of more than $43.24B.

We can also draw the boxplot of the data set. First we determine Q1, Q2 (or median), and
Q3.
Q1 = 19.25
𝑥 +𝑥 22+22
Q2 = 10 11 = = 22
2 2
𝑘(𝑛+1) 3(21)
For Q3, the locator is 𝐿 = = = 15.75
4 4
𝑄3 = 𝑥15 + (𝑥16 − 𝑥15 )(0.75) = 27 + (32 − 27)(0.75) = 30.75
𝐼𝑄𝑅 = 𝑄3 − 𝑄1 = 30.75 − 19.25 = 11.5
1.5𝐼𝑄𝑅 = 17.25

For the modified boxplot, observe that there are outliers in the upper part of the data set. The
“maximum” value is 30.75+17.25 = 48, making the data points 49, 52 and 56 as outliers.

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