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References

Cauchon, Dennis, Paul Overberg. “Census data shows minorities now a majority of U.S. births.” USA Today, 2012. Available online at http://usatoday30.usatoday.com/news/nation/story/2012-05-17/minority-birthscensus/55029100/1 (accessed April 3, 2013).

Data from the United States Department of Commerce: United States Census Bureau. Available online at http://www.census.gov/ (accessed April 3, 2013).

“1990 Census.” United States Department of Commerce: United States Census Bureau. Available online at http://www.census.gov/main/www/cen1990.html (accessed April 3, 2013).

Data from San Jose Mercury News .

Data from Time Magazine ; survey by Yankelovich Partners, Inc.

Chapter review

The values that divide a rank-ordered set of data into 100 equal parts are called percentiles. Percentiles are used to compare and interpret data. For example, an observation at the 50 th percentile would be greater than 50 percent of the other obeservations in the set. Quartiles divide data into quarters. The first quartile ( Q 1 ) is the 25 th percentile,the second quartile ( Q 2 or median) is 50 th percentile, and the third quartile ( Q 3 ) is the the 75 th percentile. The interquartile range, or IQR , is the range of the middle 50 percent of the data values. The IQR is found by subtracting Q 1 from Q 3 , and can help determine outliers by using the following two expressions.

  • Q 3 + IQR (1.5)
  • Q 1 IQR (1.5)

Formula review

i = ( k 100 ) ( n + 1 )

where i = the ranking or position of a data value,

k = the kth percentile,

n = total number of data.

Expression for finding the percentile of a data value: ( x  +  0.5 y n ) (100)

where x = the number of values counting from the bottom of the data list up to but not including the data value for which you want to find the percentile,

y = the number of data values equal to the data value for which you want to find the percentile,

n = total number of data

Listed are 29 ages for Academy Award winning best actors in order from smallest to largest.

18; 21; 22; 25; 26; 27; 29; 30; 31; 33; 36; 37; 41; 42; 47; 52; 55; 57; 58; 62; 64; 67; 69; 71; 72; 73; 74; 76; 77

  1. Find the 40 th percentile.
  2. Find the 78 th percentile.
  1. The 40 th percentile is 37 years.
  2. The 78 th percentile is 70 years.
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Listed are 32 ages for Academy Award winning best actors in order from smallest to largest.

18; 18; 21; 22; 25; 26; 27; 29; 30; 31; 31; 33; 36; 37; 37; 41; 42; 47; 52; 55; 57; 58; 62; 64; 67; 69; 71; 72; 73; 74; 76; 77

  1. Find the percentile of 37.
  2. Find the percentile of 72.
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Jesse was ranked 37 th in his graduating class of 180 students. At what percentile is Jesse’s ranking?

Jesse graduated 37 th out of a class of 180 students. There are 180 – 37 = 143 students ranked below Jesse. There is one rank of 37.

x = 143 and y = 1. x + 0.5 y n (100) = 143 + 0.5 ( 1 ) 180 (100) = 79.72. Jesse’s rank of 37 puts him at the 80 th percentile.

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  1. For runners in a race, a low time means a faster run. The winners in a race have the shortest running times. Is it more desirable to have a finish time with a high or a low percentile when running a race?
  2. The 20 th percentile of run times in a particular race is 5.2 minutes. Write a sentence interpreting the 20 th percentile in the context of the situation.
  3. A bicyclist in the 90 th percentile of a bicycle race completed the race in 1 hour and 12 minutes. Is he among the fastest or slowest cyclists in the race? Write a sentence interpreting the 90 th percentile in the context of the situation.
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  1. For runners in a race, a higher speed means a faster run. Is it more desirable to have a speed with a high or a low percentile when running a race?
  2. The 40 th percentile of speeds in a particular race is 7.5 miles per hour. Write a sentence interpreting the 40 th percentile in the context of the situation.
  1. For runners in a race it is more desirable to have a high percentile for speed. A high percentile means a higher speed which is faster.
  2. 40% of runners ran at speeds of 7.5 miles per hour or less (slower). 60% of runners ran at speeds of 7.5 miles per hour or more (faster).
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On an exam, would it be more desirable to earn a grade with a high or low percentile? Explain.

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Mina is waiting in line at the Department of Motor Vehicles (DMV). Her wait time of 32 minutes is the 85 th percentile of wait times. Is that good or bad? Write a sentence interpreting the 85 th percentile in the context of this situation.

When waiting in line at the DMV, the 85 th percentile would be a long wait time compared to the other people waiting. 85% of people had shorter wait times than Mina. In this context, Mina would prefer a wait time corresponding to a lower percentile. 85% of people at the DMV waited 32 minutes or less. 15% of people at the DMV waited 32 minutes or longer.

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In a survey collecting data about the salaries earned by recent college graduates, Li found that her salary was in the 78 th percentile. Should Li be pleased or upset by this result? Explain.

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In a study collecting data about the repair costs of damage to automobiles in a certain type of crash tests, a certain model of car had $1,700 in damage and was in the 90 th percentile. Should the manufacturer and the consumer be pleased or upset by this result? Explain and write a sentence that interprets the 90 th percentile in the context of this problem.

The manufacturer and the consumer would be upset. This is a large repair cost for the damages, compared to the other cars in the sample. INTERPRETATION: 90% of the crash tested cars had damage repair costs of $1700 or less; only 10% had damage repair costs of $1700 or more.

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The University of California has two criteria used to set admission standards for freshman to be admitted to a college in the UC system:

  1. Students' GPAs and scores on standardized tests (SATs and ACTs) are entered into a formula that calculates an "admissions index" score. The admissions index score is used to set eligibility standards intended to meet the goal of admitting the top 12% of high school students in the state. In this context, what percentile does the top 12% represent?
  2. Students whose GPAs are at or above the 96 th percentile of all students at their high school are eligible (called eligible in the local context), even if they are not in the top 12% of all students in the state. What percentage of students from each high school are "eligible in the local context"?
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Suppose that you are buying a house. You and your realtor have determined that the most expensive house you can afford is the 34 th percentile. The 34 th percentile of housing prices is $240,000 in the town you want to move to. In this town, can you afford 34% of the houses or 66% of the houses?

You can afford 34% of houses. 66% of the houses are too expensive for your budget. INTERPRETATION: 34% of houses cost $240,000 or less. 66% of houses cost $240,000 or more.

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Use [link] to calculate the following values:

First quartile = _______

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Second quartile = median = 50 th percentile = _______

4

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Third quartile = _______

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Interquartile range ( IQR ) = _____ – _____ = _____

6 – 4 = 2

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10 th percentile = _______

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70 th percentile = _______

6

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Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
Husseini Reply
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hi
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hi
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hi
Mahesh
Hi
Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
all of you please speak in English I can't understand you're language
Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
Kalombe
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Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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