Question

You have been tracking how much you spend on gas every month for several months and found that on average you spend about $60 per month. If you had to guess, what would you expect the IQR (Interquartile Range) of your gas spending to be? Would $1, $5 or $100 be most logical? Give statistical reasoning to back up your answer.

Answer 1

Answer: $5

Step-by-step explanation: The interquartile range (IQR) refers to the difference between the upper(75%) quartile and lower(25%) quartile of a distribution. Hence, ensuring that the middle 50% is being captured. With the average given as $60, having a interquartile range capturing the middle 50% as $1 seems so small from a statistical stand point. Similarly, an interquartile range of $100 capturing the middle 50% is also too large and nearly impossible if the average price is $60. However, a price of $5 sit well in between considering the average price of $60