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# Descriptive stats – part B

Measures of Relative Location and Detecting
Outliers
Exploratory Data Analysis

x
Slide 1

Measures of Relative Location
and Detecting Outliers

z-Scores
Chebyshev’s Theorem
Empirical Rule
Detecting Outliers

Slide 2

z-Scores

The z-score is often called the standardized value.
It denotes the number of standard deviations a data
value xi is from the mean.

xi  x
zi 
s

A data value less than the sample mean will have a zscore less than zero.
A data value greater than the sample mean will have
a z-score greater than zero.
A data value equal to the sample mean will have a zscore of zero.
Slide 3

Raw data
Raw data on Apartment Rents
Mean = 490.8

Standard deviation = 54.74

425
440
450
465
480
510
575

430
440
450
470
485
515
575

430
440
450
470
490
525
580

435
445
450
472
490
525
590

435
445
450
475
490
525
600

435
445
460
475
500
535
600

435
445
460
475
500
549
600

435
445
460
480
500
550
600

440
450
465
480
500
570
615

440
450
465
480
510
570
615
Slide 4

Example: Apartment Rents

z-Score of Smallest Value (425)
xi  x 425  490.80
z

 1. 20
s
54. 74

Standardized Values for Apartment Rents

-1.20
-0.93
-0.75
-0.47
-0.20
0.35
1.54

-1.11
-0.93
-0.75
-0.38
-0.11
0.44
1.54

-1.11
-0.93
-0.75
-0.38
-0.01
0.62
1.63

-1.02
-0.84
-0.75
-0.34
-0.01
0.62
1.81

-1.02
-0.84
-0.75
-0.29
-0.01
0.62
1.99

-1.02
-0.84
-0.56
-0.29
0.17
0.81
1.99

-1.02
-0.84
-0.56
-0.29
0.17
1.06
1.99

-1.02
-0.84
-0.56
-0.20
0.17
1.08
1.99

-0.93
-0.75
-0.47
-0.20
0.17
1.45
2.27

-0.93
-0.75
-0.47
-0.20
0.35
1.45
2.27
Slide 5

Chebyshev’s Theorem
At least (1 - 1/k2) of the items in any data set will be
within k standard deviations of the mean, where k is
any value greater than 1.
• At least 75% of the items must be within
k = 2 standard deviations of the mean.
• At least 89% of the items must be within
k = 3 standard deviations of the mean.
• At least 94% of the items must be within
k = 4 standard deviations of the mean.

Slide 6

Example: Apartment Rents

Chebyshev’s Theorem
Let k = 1.5 with

x = 490.80 and s = 54.74

At least (1 - 1/(1.5)2) = 1 - 0.44 = 0.56 or 56%
of the rent values must be between
x - k(s) = 490.80 - 1.5(54.74) = 409
and
x + k(s) = 490.80 + 1.5(54.74) = 573

Slide 7

Example: Apartment Rents

Chebyshev’s Theorem (continued)
Actually, 86% of the rent values
are between 409 and 573.

425
440
450
465
480
510
575

430
440
450
470
485
515
575

430
440
450
470
490
525
580

435
445
450
472
490
525
590

435
445
450
475
490
525
600

435
445
460
475
500
535
600

435
445
460
475
500
549
600

435
445
460
480
500
550
600

440
450
465
480
500
570
615

440
450
465
480
510
570
615

Slide 8

Empirical Rule
For data having a bell-shaped distribution:

• Approximately 68% of the data values will be

within one standard deviation of the mean.
• Approximately 95% of the data values will be
within two standard deviations of the mean.
• Almost all (99.7%) of the items will be within
three standard deviations of the mean.
Slide 9

Example: Apartment Rents

Empirical Rule
Within +/- 1s
Within +/- 2s
Within +/- 3s

425
440
450
465
480
510
575

430
440
450
470
485
515
575

430
440
450
470
490
525
580

Interval
436.06 to 545.54
381.32 to 600.28
326.58 to 655.02
435
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450
472
490
525
590

435
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490
525
600

435
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535
600

435
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500
549
600

% in Interval
48/70 = 69%
68/70 = 97%
70/70 = 100%
435
445
460
480
500
550
600

440
450
465
480
500
570
615

440
450
465
480
510
570
615
Slide 10

Detecting Outliers

An outlier is an unusually small or unusually large
value in a data set.
A data value with a z-score less than -3 or greater
than +3 might be considered an outlier.
It might be an incorrectly recorded data value.
It might be a data value that was incorrectly included
in the data set.
It might be a correctly recorded data value that
belongs to the data set !

Slide 11

Example: Apartment Rents

Detecting Outliers
The most extreme z-scores are -1.20 and 2.27.
Using |z| > 3 as the criterion for an outlier,
there are no outliers in this data set.

Standardized Values for Apartment Rents
-1.20
-0.93
-0.75
-0.47
-0.20
0.35
1.54

-1.11
-0.93
-0.75
-0.38
-0.11
0.44
1.54

-1.11
-0.93
-0.75
-0.38
-0.01
0.62
1.63

-1.02
-0.84
-0.75
-0.34
-0.01
0.62
1.81

-1.02
-0.84
-0.75
-0.29
-0.01
0.62
1.99

-1.02
-0.84
-0.56
-0.29
0.17
0.81
1.99

-1.02
-0.84
-0.56
-0.29
0.17
1.06
1.99

-1.02
-0.84
-0.56
-0.20
0.17
1.08
1.99

-0.93
-0.75
-0.47
-0.20
0.17
1.45
2.27

-0.93
-0.75
-0.47
-0.20
0.35
1.45
2.27
Slide 12

Exploratory Data Analysis

Five-Number Summary
Box Plot

Slide 13

Five-Number Summary

Smallest Value
First Quartile
Median
Third Quartile
Largest Value

Slide 14

Example: Apartment Rents

Five-Number Summary
Lowest Value = 425
First Quartile = 450
Median = 475
Third Quartile = 525
Largest Value = 615

425
440
450
465
480
510
575

430
440
450
470
485
515
575

430
440
450
470
490
525
580

435
445
450
472
490
525
590

435
445
450
475
490
525
600

435
445
460
475
500
535
600

435
445
460
475
500
549
600

435
445
460
480
500
550
600

440
450
465
480
500
570
615

440
450
465
480
510
570
615
Slide 15

Box Plot

A box is drawn with its ends located at the first and
third quartiles.
A vertical line is drawn in the box at the location of
the median.
Limits are located (not drawn) using the interquartile
range (IQR).
• The lower limit is located 1.5(IQR) below Q1.
• The upper limit is located 1.5(IQR) above Q3.
• Data outside these limits are considered outliers.
… continued

Slide 16

Box Plot (Continued)

Whiskers (dashed lines) are drawn from the ends of
the box to the smallest and largest data values inside
the limits.
The locations of each outlier is shown with the
symbol * .

Slide 17

Example: Apartment Rents

Box Plot
Lower Limit: Q1 - 1.5(IQR) = 450 - 1.5(75) = 337.5
Upper Limit: Q3 + 1.5(IQR) = 525 + 1.5(75) = 637.5

There are no outliers.

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47
5

50
0

52
5

550

575 600

625

Slide 18