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Question from Kenneth:

Hello:

What is a common calculation used to determine percentiles?

For example, five employees have the following salaries:

Office worker 1 - $\$25,000$

Office worker 2 - $\$27,000$

Office worker 3 - $\$30,000$

Office worker 4 - $\$32,000$

Office worker 5 - $\$35,000$

What is the percentile rank of office worker 3 who earns $\$30,000?$

Here's what I know: Add the number of salaries. Total: 5

Add the smallest number of salaries less than $\$30,000.$ There are two.

Now, divide 2 by 5 and multiply by 100. $\large \frac25 \normalsize \times 100 = 40.$

I think the office worker making $\$30,000$ is in the 40th percentile.
and I'm not sure what this ranking indicates.

I thank you for any helpful reply and or different calculation.

Hi Kenneth,

Your calculations are correct but rather than saying

Add the number of salaries. Total: 5

you should say

Count the number of salaries. Total: 5

and rather than saying

Add the smallest number of salaries less than $\$30,000.$ There are two.

you should say

Count the number of salaries less than $\$30,000.$ There are two.

The fact that $\$30,000$ is at the $40^{th}$ percentile means that $40 \%$ of the employees earn less than $\$30,000.$

Harley

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