Final answer:
To compute the Interquartile range (IQR), one must first rank the data values from lowest to highest. The IQR is calculated by subtracting the first quartile (Q1) from the third quartile (Q3).
Step-by-step explanation:
The first step to compute the C. Interquartile range (IQR) is ranking the values from lowest to highest. The IQR is the range of the middle 50 percent of the data values and is found by subtracting the first quartile (Q1) from the third quartile (Q3). This step is crucial for calculating various measures of data spread, including median, percentiles, and quartiles which are used to understand the distribution of a data set.
Example calculations based on this concept include finding the median, which is the middle value of the ranked data, and determining potential outliers using the IQR. For instance, a value is considered a potential outlier if it is less than Q1 minus 1.5 times the IQR or more than Q3 plus 1.5 times the IQR.