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Explain the concept of the percentile rank for an observation of a data set.

Short Answer

Expert verified
The percentile rank of a data set observation is the percentage of data lower or equal to that observation. To calculate it, arrange the data set in ascending order, identify the position of the observation and use the formula provided to calculate the percentile rank. For instance, the percentile rank of 30 in the data set {10, 20, 30, 40, 50} is 60%.

Step by step solution

01

Understand the Percentile Rank Concept

The percentile rank of an observation is the percentage of data in a data set that is less than or equal to that observation. It provides a way to compare an individual value with the rest of the data set. It is often used in different fields such as statistics, academia, and business.
02

Calculate the Percentile Rank

To calculate the percentile rank, first arrange the data set in ascending order. Then, identify the position of the observation in question. Following that, use the formula: \( \text{{Percentile rank}} = \frac{{\text{{number of scores less than the target score}} + 0.5 \times \text{{number of scores equal to the target score}}}}{\text{{total number of scores}}} \times 100 \)
03

Providing an Example

For example, if you have a data set {10, 20, 30, 40, 50} and you want to find the percentile rank of 30, first, arrange the data set. It is already in ascending order. The position of 30 is 3, and the total number of scores is 5. Following the formula, the percentile rank is \( \frac{{2 + 0.5 \times 1}}{5} \times 100 = 60 \). Hence, 60% of the scores are less than or equal to 30.

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