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Quartile

A descriptive statistic dividing a ranked dataset into four equal-sized groups, marking the twenty-fifth, fiftieth, and seventy-fifth percentiles.

Last reviewedDarrin Baines IP Ltd

Concept Architecture

Concept


Theoretically, Quartile is a descriptive statistical measure that divides an ordered dataset into four equal parts, each containing approximately one-quarter of the observations. The three quartiles?first (Q?), second (Q?), and third (Q?)?represent the 25th, 50th, and 75th percentiles, respectively. Quartiles are fundamental measures of position within a distribution and are widely used to summarise data, assess dispersion, and identify skewness and outliers.

Mathematically, quartiles are determined by ordering observations and identifying the values corresponding to specified cumulative proportions of the dataset. Several recognised computational methods exist, differing in their treatment of interpolation for finite samples. Quartiles provide the basis for derived measures such as the interquartile range and box-and-whisker plots, which summarise distributional characteristics without assuming any underlying probability distribution.

In practice, quartiles are calculated from ordered observations using recognised statistical algorithms implemented in statistical software. In health economics they are commonly used to summarise healthcare costs, quality-adjusted life years, waiting times, resource utilisation, and probabilistic sensitivity analysis results, particularly where data are skewed and the mean is not an adequate summary measure.

Purpose


Used to summarise the distribution of continuous data, quantify relative position, assess variability, identify skewness and outliers, and describe uncertainty in health economic analyses.


Mathematical Formulae

Primary Formula

Quartile position:

L = p ? (n + 1)

where:

  • L = quartile position
  • p = cumulative proportion (0.25, 0.50 or 0.75)
  • n = number of observations

Thus:

Q?: p = 0.25

Q?: p = 0.50

Q?: p = 0.75

Supporting Formulae

Interquartile Range:

IQR = Q? ? Q?

Lower Outlier Limit:

Q? ? 1.5 ? IQR

Upper Outlier Limit:

Q? + 1.5 ? IQR

Related Mathematical Methods

  • Percentiles
  • Quantiles
  • Median
  • Interquartile Range
  • Order Statistics
  • Box-and-Whisker Plot
  • Non-Parametric Statistics

Example

Annual healthcare costs are recorded for 120 patients.

After ordering the observations:

Q? = �4,350

Median (Q?) = �6,120

Q? = �8,950

The interquartile range is:

IQR = �8,950 ? �4,350

= �4,600

This indicates that the middle 50% of annual healthcare costs lie within a range of �4,600, providing a robust summary of variability despite the presence of extreme values.


Excel Implementation

FunctionExample FormulaHealth Economics Application
QUARTILE.INC=QUARTILE.INC(B2:B121,1)Calculate the first quartile of healthcare costs.
QUARTILE.INC=QUARTILE.INC(B2:B121,2)Calculate the median.
QUARTILE.INC=QUARTILE.INC(B2:B121,3)Calculate the third quartile.
QUARTILE.EXC=QUARTILE.EXC(B2:B121,1)Calculate quartiles using the exclusive method.
PERCENTILE.INC=PERCENTILE.INC(B2:B121,0.75)Calculate quartiles using percentile functions.

VBA (Optional)

Automate quartile calculations, interquartile range estimation, and generation of summary tables for health economic datasets.


Sources

  • Hyndman RJ, Fan Y. Sample Quantiles in Statistical Packages. The American Statistician. 1996.
  • Altman DG. Practical Statistics for Medical Research.
  • Conover WJ. Practical Nonparametric Statistics.
  • Briggs A, Claxton K, Sculpher M. Decision Modelling for Health Economic Evaluation.
  • Drummond MF, et al. Methods for the Economic Evaluation of Health Care Programmes.
  • NICE Health Technology Evaluation Manual.

Library

Publications

1
  • Book

    Bayesian Methods in Health Economics — Gianluca Baio, 1st Edition ed., 2012 (Chapman & Hall / CRC Press)

    An overview of Bayesian statistical methods for the analysis of health economic data, covering economic evaluation concepts, statistical cost-effectiveness analysis, Bayesian computation and MCMC, and applied health economic evaluation.

Frequently Asked Questions (6)

  • What is a quartile?

    A descriptive statistic dividing a ranked dataset into four equal-sized groups, marking the twenty-fifth, fiftieth, and seventy-fifth percentiles.

    Source: Casella G, Berger RL. Statistical Inference. 2nd ed. Duxbury; 2002.

  • What does dividing data into quartiles show?

    A quartile divides a ranked dataset into four equal parts, marking the points below which a quarter, a half, and three-quarters of the observations fall. Splitting the data this way shows how it is distributed, locating the middle and the spread of the bulk of values, and the gap between the first and third quartiles gives the interquartile range. Quartiles are simply the twenty-fifth, fiftieth, and seventy-fifth percentiles. Carving a distribution into four equal parts is what it does. Kirkwood and Sterne (2003) describe this.

    Source: Kirkwood & Sterne 2003

  • How are quartiles calculated?

    Quartiles are calculated by ordering the data and finding the values that divide it into four equal parts: the first quartile is the value below which a quarter of the data lie, the second is the median, and the third is the value below which three quarters lie, with interpolation used when positions fall between data points. So quartiles are calculated from the ordered data by locating these dividing points, and because different conventions exist for interpolation, the exact method can vary slightly, though the quartiles reliably mark the quarter, half, and three-quarter positions of the distribution, providing the basis for the interquartile range and box plots.

    Source: Casella & Berger 2002

  • What are quartiles used for?

    Quartiles are used to describe the spread and position of data, to compute the interquartile range as a robust measure of dispersion, and to construct box plots that display the median, quartiles, and outliers. So quartiles are used to summarise a distribution robustly, since they are based on rank and resistant to outliers, which makes them valuable for skewed data, and they underpin common descriptive tools, providing a clear picture of where the data are concentrated and how spread out they are through the middle half, complementing the median as a summary of the centre.

    Source: Casella & Berger 2002

  • How do quartiles relate to the interquartile range?

    Quartiles relate to the interquartile range in that the interquartile range is the difference between the third and first quartiles, that is the spread of the middle half of the data. The quartiles define the boundaries of this central portion. So quartiles and the interquartile range are directly linked, with the first and third quartiles marking the range that contains the central fifty per cent of the data and the interquartile range measuring its width, which is why quartiles are the basis for this robust measure of dispersion, resistant to outliers because it ignores the extreme quarters of the data.

    Source: Casella & Berger 2002

  • How do quartiles relate to percentiles?

    Quartiles relate to percentiles as specific percentiles: the first quartile is the twenty-fifth percentile, the second, or median, is the fiftieth, and the third is the seventy-fifth. Quartiles thus divide the data into four parts, while percentiles allow division into a hundred. So quartiles are particular percentiles marking the quarter points of a distribution, part of the broader family of quantiles, which is why they can be expressed as percentiles, and the choice between quartiles, deciles, and percentiles depends on how finely the distribution's positions need to be described for the purpose at hand.

    Source: Casella & Berger 2002

Trust Record

Verified by Dr Darrin Baines

British health economist

Professional identity: darrinbaines.org

Verification date: 23 Dec 2025

Content version: 1.0.0

Canonical Identity

Term code
HE-ES-SA-171

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