Percentile

In statistics, a k-th percentile, also known as percentile score or centile, is a score (e.g., a data point) below which a given percentage k of all scores in its frequency distribution exists ("exclusive" definition). Alternatively, it is a score at or below which a given percentage of the all scores exists ("inclusive" definition). I.e., a score in the k-th percentile would be above approximately k% of all scores in its set. For example, under the exclusive definition, the 97th percentile is the value such that 97% of the data points are less than it. Percentiles depends on how scores are arranged.

Percentiles are a type of quantiles, obtained by a subdivision into 100 groups. The 25th percentile is also known as the first quartile (Q₁), the 50th percentile as the median or second quartile (Q₂), and the 75th percentile as the third quartile (Q₃). For example, the 50th percentile (median) is the score below (or at or below, depending on the definition) which 50% of the scores in the distribution are found.

Percentiles are expressed in the same unit of measurement as the input scores, not in percent; for example, if the scores refer to human weight, the corresponding percentiles will be expressed in kilograms or pounds. In the limit of an infinite sample size, the percentile approximates the percentile function, the inverse of the cumulative distribution function.

A related quantity is the percentile rank of a score, expressed in percent, which represents the fraction of scores in its distribution that are less than it, an exclusive definition. Percentile scores and percentile ranks are often used in the reporting of test scores from norm-referenced tests, but, as just noted, they are not the same. For percentile ranks, a score is given and a percentage is computed. Percentile ranks are exclusive: if the percentile rank for a specified score is 90%, then 90% of the scores were lower. In contrast, for percentiles a percentage is given and a corresponding score is determined, which can be either exclusive or inclusive. The score for a specified percentage (e.g., 90th) indicates a score below which (exclusive definition) or at or below which (inclusive definition) other scores in the distribution fall.

There is no standard definition of percentile; however, all definitions yield similar results when the number of observations is very large and the probability distribution is continuous. In the limit, as the sample size approaches infinity, the 100p^th percentile (0<p<1) approximates the inverse of the cumulative distribution function (CDF) thus formed, evaluated at p, as p approximates the CDF. This can be seen as a consequence of the Glivenko–Cantelli theorem. Some methods for calculating the percentiles are given below.

The methods given in the calculation methods section (below) are approximations for use in small-sample statistics. In general terms, for very large populations following a normal distribution, percentiles may often be represented by reference to a normal curve plot. The normal distribution is plotted along an axis scaled to standard deviations, or sigma (${\displaystyle \sigma }$) units. Mathematically, the normal distribution extends to negative infinity on the left and positive infinity on the right. Note, however, that only a very small proportion of individuals in a population will fall outside the −3σ to +3σ range. For example, with human heights very few people are above the +3σ height level.

Percentiles represent the area under the normal curve, increasing from left to right. Each standard deviation represents a fixed percentile. Thus, rounding to two decimal places, −3σ is the 0.13th percentile, −2σ the 2.28th percentile, −1σ the 15.87th percentile, 0σ the 50th percentile (both the mean and median of the distribution), +1σ the 84.13rd percentile, +2σ the 97.72nd percentile, and +3σ the 99.87th percentile. This is related to the 68–95–99.7 rule or the three-sigma rule. Note that in theory the 0th percentile falls at negative infinity and the 100th percentile at positive infinity, although in many practical applications, such as test results, natural lower and/or upper limits are enforced.

When ISPs bill "burstable" internet bandwidth, the 95th or 98th percentile usually cuts off the top 5% or 2% of bandwidth peaks in each month, and then bills at the nearest rate. In this way, infrequent peaks are ignored, and the customer is charged in a fairer way. The reason this statistic is so useful in measuring data throughput is that it gives a very accurate picture of the cost of the bandwidth. The 95th percentile says that 95% of the time, the usage is below this amount: so, the remaining 5% of the time, the usage is above that amount.