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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

differentiate between demand and supply giving examples
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differentiated between demand and supply using examples
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appreciation
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In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
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other things being equal
AI-Robot
When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
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What is different between quantity demand and demand?
Shukri Reply
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
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Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
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Jabir
What do you think is more important to focus on when considering inequality ?
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it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
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In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
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Answer
Feyisa
c
Jabir
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
Gsbwnw Reply
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
Abdureman
types of unemployment
Yomi Reply
What is the difference between perfect competition and monopolistic competition?
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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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