Differences Between Percentage and Percentile
by Lisa, Jul 24 2023
Introduction
Percentage and percentile are two distinct mathematical concepts often used in fields like statistics, economics, and finance. While they may sound similar, they fundamentally differ in meaning and application. Let's explore the differences between percentage and percentile, along with definitions and examples.
What is Percentage
- A percentage is a way of representing a proportion or a fraction of something as a whole.
- It is expressed as a number out of 100 or as a ratio with a denominator of 100. In other words, the percentage tells us the amount of a certain value per 100 units. It is widely used to express proportions, make comparisons, or describe change in various contexts.
- For example, if a student scores 85 out of 100 on a test, their score can be expressed as 85%. Here's how you would convert a fraction to a percentage: (Score / Total possible points) x 100 = Percentage (85 / 100) x 100 = 85%
What is Percentile
- Percentile, on the other hand, is a measure used in statistics to represent the relative standing of a value within a dataset.
- It indicates the percentage of observed values that are less than or equal to a particular value. In simpler terms, it tells us where a value is ranked in a set of values. Percentiles are commonly used to interpret standardised test scores and compare individual performance to the broader population.
- For example, if a student is in the 90th percentile on a test, it means that they scored equal to or higher than 90% of the students who took the test.
Comparing Percentage and Percentile
While percentage deals with the proportion of one part to the whole, percentile focuses on where a particular value stands in comparison to the entire set of values.
Examples:
- Percentage: If a store offers a 20% off sale, it means that each item's price is reduced by 20 out of every 100 cents. So, if an item costs $40, the discount would be ($40 x 20%) = $8, and the final price would be $32.
- Percentile: Let's consider a standardized test taken by 1000 students. If your score is at the 80th percentile, this means your score is higher than or equal to 80% of the students who took the exam, or you have scored equal to or better than 800 of the 1000 students.
Summary
In conclusion, percentage and percentile are different concepts – percentage expresses a portion of a whole, while percentile indicates a value's relative standing within a dataset. Both are important tools for measurements and comparisons in various fields.