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The fences provide a guideline by which to define an outlier which may be defined in other ways. The lower fence is the lower limit and the upper fence is the upper limit of data and any data lying outside this defined bounds can be considered an outlier.
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In a similar way we now consider the upper half of the data set. Any value greater than the upper fence or less than the lower fence is considered an outlier. We now calculate 3 x iqr and see that this is 3 x 10 30.
Plugging in the values we find a lower fence of 3 and an upper fence of 13.
In a similar way we now consider the upper half of the data set. The lower fence is the lower limit and the upper fence is the upper limit of data and any data which does not fit in the upper and lower limits fence is considered as the outliers. On the whole both the formulas require interquartile range value as a common input. The lower fence is the lower limit and the upper fence is the upper limit of data and any data lying outside this defined bounds can be considered an outlier.
