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Deciles and percentiles

Deciles and percentiles

Deciles

Deciles split a large group, ordered by size, into ten equal groups, each holding 10% of the data.

That is how the news describes the incomes in a country: all the households (families, or people living alone) are ordered by their income and split into ten.

  • The bottom decile (decile 1) – the 10% of households with the lowest income.
  • The top decile (decile 10) – the 10% of households with the highest income.
The mean income by decile

The mean income of a household in each decile, net a month (example figures, rounded):

0102030405012345678910DecileThousand ₪ a month4.26.88.910.91315.31821.526.542

The income rises slowly from decile to decile, and jumps in the top decile: from 26.5 thousand ₪ to 42 thousand ₪.

The gap between the deciles

Inequality of income is measured by a number: how many times the mean income in the top decile is that in the bottom decile.

xˉ10xˉ1\displaystyle \frac{\bar{x}_{10}}{\bar{x}_{1}}

In the example: 424.2=10\displaystyle {\frac{42}{4.2}}={10} – a household in the top decile brings in on average 10 times as much as a household in the bottom decile.

The top decile’s share of all income

Each decile holds the same number of households, so a decile’s share of all income is its mean divided by the sum of the means of all the deciles.

  • The sum of the means: 4.2+6.8+8.9+10.9+13+15.3+18+21.5+26.5+42=167.1\displaystyle {4.2+6.8+8.9+10.9+13+15.3+18+21.5+26.5+42}={167.1} thousand ₪.
  • The top decile’s share: 42167.1≈0.251\displaystyle \frac{42}{167.1}\approx0.251 – about a quarter of all income, earned by a tenth of the households.
Deciles in a small group

In a small group too, each decile is a tenth of the people.

A company has 40 workers, so each decile holds 4 workers.
The top decile is the four workers who earn the most.
Their pay, in shekels: 18500, 21000, 24000, 32500\displaystyle 18500,\ 21000,\ 24000,\ 32500

The mean pay in the top decile: 18500+21000+24000+325004=24000\displaystyle {\frac{18500+21000+24000+32500}{4}}={24000} ₪.

Percentiles

Percentiles split the ordered data into a hundred parts. A value at the k\displaystyle k-th percentile is greater than k\displaystyle k percent of the data.

  • A baby’s weight at the 75th percentile: 75% of the babies of the same age weigh less.
  • A psychometric score at the 80th percentile: 80% of the candidates scored lower. It does not mean the candidate answered 80% of the questions correctly.
Quartiles, deciles and percentiles

Quartiles, deciles and percentiles are one idea with different splits:

  • Q1\displaystyle Q_1 – the 25th percentile.
  • The median – the 50th percentile, the border between decile 5 and decile 6.
  • Q3\displaystyle Q_3 – the 75th percentile.
  • The top decile – the data above the 90th percentile.
Exercise 1

The mean income of a household in each decile in a town, in thousands of shekels a month:

Decile12345678910
Income3.56810121417202538.5
a

How many times as large as the income in the bottom decile is the income in the top decile?

    / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – check and a new line · * – times · ^ – power, ↓ – end of the power

    / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – a new line · * – times · ^ – power, ↓ – end of the power

    b

    What percent of all the income in the town goes to the top decile?

      / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – check and a new line · * – times · ^ – power, ↓ – end of the power

      / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – a new line · * – times · ^ – power, ↓ – end of the power

      c

      A newspaper wrote: “The top decile earns 11 times as much as everyone else.” What is the mistake?

      Exercise 2

      A chain of shops has 50 workers.

      a

      How many workers are there in each decile?

        / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – check and a new line · * – times · ^ – power, ↓ – end of the power

        / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – a new line · * – times · ^ – power, ↓ – end of the power

        b

        The pay of the workers in the top decile, in shekels:
        19000, 22000, 23500, 26000, 34500\displaystyle 19000,\ 22000,\ 23500,\ 26000,\ 34500
        Work out the mean pay in the top decile.

          / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – check and a new line · * – times · ^ – power, ↓ – end of the power

          / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – a new line · * – times · ^ – power, ↓ – end of the power

          Exercise 3

          Noa’s psychometric exam score is at the 85th percentile.

          a

          What percent of the candidates scored higher than her?

            / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – check and a new line · * – times · ^ – power, ↓ – end of the power

            / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – a new line · * – times · ^ – power, ↓ – end of the power

            b

            A friend of hers says: “Noa answered 85% of the questions correctly.” Is he right? Explain.

            Exercise 4

            A baby girl of six months weighs 7.2 kg, which is the weight at the 40th percentile for her age.

            a

            Out of 1,000 babies aged six months, about how many weigh less than her?

              / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – check and a new line · * – times · ^ – power, ↓ – end of the power

              / – fraction bar · Tab or the arrows – between numerator and denominator, then a note above or below · Enter – a new line · * – times · ^ – power, ↓ – end of the power

              b

              Is her weight above the median or below it? Between which quartiles is it?