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Detection and Replacement of Outliers using Interquartile Range(IQR)

Outlier

  • An observation which differs from an overall pattern on a sample dataset is called an outlier.

Interquartile Range

  • The IQR method divides a data set into quartiles to measure variability.
  • The information is arranged in ascending order and divided into four equal parts.(Q1, Q2, Q3, Q4)
  • A dataset has 2n / 2n+1 data points, then (n > 2)
    • Q1 : median of the dataset.
    • Q2 : median of n smallest data points.
    • Q3 : median of n highest data points.
  • IQR is the range between the first and the third quartiles namely Q1 and Q3 (IQR = Q3 - Q1)
  • The outliers are data points which fall below Q1 – 1.5*IQR or above Q3 + 1.5*IQR.