A.M. and I were discussing financial planners/money managers and smiled when the term "best of the best" came up.
What exactly is the best of the best?
The statisticain in me kicks in. Let's assume all our managers are sorted from low to high and we put them in "quartiles" (I wonder if they follow a normal distribution??) Call the top quartile (those guys above the Q3 point) "The Best". So the best of the best is the "top quartile of the top quartile". Right?
Well in statistics there is something called the Interquartile Range (IQR) which is the middle fifty (sounds suspiciously close to my age). Any value outside of [ Q3 + 1.5*(IQR) ] is an outlier.
Hmmm - Out right lie or Out liar?