How does U.S. Treasury Regulation 1.482-1(e)(2) define the interquartile range? How do the Regulations definition differ from the way MS Excel calculate the interquartile range (this may require you to compare the two methods). Explain the purpose of the interquartile range and how it is used. Is a taxpayer required to use the interquartile range to demonstrate it has achieved an arms length result? Calculate the interquartile range and the median for the following range of potential arms length operating margins: Operating Margin (%)

2017 Comp 1 2019 17.82 0.62 2 5.07 7.18 2018 (0.99) 7.11 (3.87) (0.17) (11.79) 3 2.98 4.24 4 0.78 2.32 5 2.87 21.13 6 3.94 4.55 5.25 7 13.73 13.40 10.42 8 12.11 3.09 7.24 9 5.29 3.31 7.37 10 8.72 9.36 13.11 . 11 4.92 0.16 6.87 2017 Comp 1 2019 17.82 0.62 2 5.07 7.18 2018 (0.99) 7.11 (3.87) (0.17) (11.79) 3 2.98 4.24 4 0.78 2.32 5 2.87 21.13 6 3.94 4.55 5.25 7 13.73 13.40 10.42 8 12.11 3.09 7.24 9 5.29 3.31 7.37 10 8.72 9.36 13.11 . 11 4.92 0.16 6.87