What is a decile in statistics |
"what is a decile in statistics" explained about the decile definition and example, what is decile, decile meanings and what are the applications of decile.
What Is A Decile In Statistics
what is decile: The decile meanings is a quantitative measure of dividing a set of ranked data into 10 equally large parts. A decile rank arranges the data in order from lowest to highest and is done on a scale of one to 10 where each successive number corresponds to an increase of 10 percentage points.
A decile is usually used to assign decile ranks to a data set. A decile rank arranges the data in order from lowest to highest and is done on a scale of one to 10 where each successive number corresponds to an increase of 10 percentage points. In other words, there are nine decile points. The 1st decile, or D1, is the point that has 10% of the observations below it, D2 has 20% of the observations below it, D3 has 30% of the observations falling below it, and so on.
If we want to find D1, D2, D3
then D1 = n+1/10
D2 = 2(n+1)/10
D3 = 3(n+1)/10
what are the applications of decile: In real life, there are situations when we want to know the strongest, weakest, largest, smallest, top, bottom values in given large data. When you have a large data, you want to understand a certain part of that spread and make the necessary actions after. If you want to divide the data into ten equal parts, then you have a decile.
We do this in standardized exams, income distribution and in investments. For example, academicians would want to know how the youth of the nation fare compared to the country's standards of quality knowledge acquisition. If the top 20% percent of the high scorers are in the first decile, it gives a hint to the education department that the teachers, curriculum experts are doing a great job in the delivery of their work because the test-takers fared well. In the case of income distribution, if the top 10% of the wage earners are in the 8th decile, it gives a hint to the government to do something to increase their earning power.
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