A large company releases summary statistics about the annual salaries for its employees. Mean standard deviation minimum Q1 medi
an Q3 maximum $63,429 $38,439 $18,000 $50,000 $58,000 $68,000 $350,000 Based on this information, are there any outliers in the data? Explain your reasoning
Pieces of data such as $18,000 and $350,000 represent outliers in this chart in standard deviation .
How to interpret a standard deviation?
The term "standard deviation" (or "") refers to the degree of dispersion of the data from the mean. Data are grouped around the mean when the standard deviation is low, and are more dispersed when the standard deviation is high.
The standard deviation calculates how much the data vary from the mean value. It is helpful for contrasting data sets that might have the same mean but a different range.
In this chart, there are outliers. The main outliers are $18,000 and $350,000. This is because we know the mean or average is $63,423, and therefore values that are too different from this average are considered outliers.
