Question from Kenneth:
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.