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Statistical

Interquartile Range (IQR) formula and 1.5xIQR outlier detection fences

Measure middle-50% spread with QUARTILE.INC(r, 3) - QUARTILE.INC(r, 1) and flag potential outliers outside Tukey's Q1 - 1.5*IQR and Q3 + 1.5*IQR fences.

Use IQR fences to flag observations for investigation

A single extreme spike (like 50 in {10, 12, 14, 15, 16, 18, 50}) inflates both AVERAGE and STDEV.S—stretching standard-deviation thresholds wide enough to hide the very outlier you want to catch.

Interquartile Range IQR = Q3 - Q1 (17 - 13 = 4) depends strictly on the middle 50% of values. Tukey's standard box-plot fences sit at Lower = Q1 - 1.5*IQR (7) and Upper = Q3 + 1.5*IQR (23), immediately flagging 50 as an outlier.

MetricFormulaValue on {10,12,14,15,16,18,50}
Q1 (25th pct)=QUARTILE.INC(A2:A8, 1)13
Q3 (75th pct)=QUARTILE.INC(A2:A8, 3)17
IQR=Q3 - Q14
Upper Fence=Q3 + 1.5 * IQR23 (flags 50)

IQR, upper/lower fences, and outlier count formulas

Bind quartileLow, quartileHigh, and iqr with LET so COUNTIF totals both low and high outliers in one formula.

=QUARTILE.INC(A2:A8, 3) - QUARTILE.INC(A2:A8, 1)

Count total outliers outside 1.5xIQR fences

Adds values strictly below Q1 - 1.5*IQR and strictly above Q3 + 1.5*IQR.

=LET(quartileLow, QUARTILE.INC(A2:A8, 1), quartileHigh, QUARTILE.INC(A2:A8, 3), iqr, quartileHigh - quartileLow, COUNTIF(A2:A8, "<" & (quartileLow - 1.5 * iqr)) + COUNTIF(A2:A8, ">" & (quartileHigh + 1.5 * iqr)))

Inputs and interpretation

Fences flag possible outliers; they do not establish that an observation is erroneous. Quartile interpolation depends on the chosen INC convention and sample size. Use a nonempty numeric range. With IQR zero, any different value may be flagged; investigate the distribution rather than deleting rows automatically.

Try the example

Use the original values or change them to test your understanding.

Further reading