Struggling to understand Excel Formulae? You don’t have to anymore. This article provides a detailed overview of the most important formulae, PERCENTILE.INC and PERCENTILE.EXC, allowing you to make the most of your data.
Syntax and arguments of the formula
To understand how the PERCENTILE.INC Excel formula works, it is essential to examine its syntax and arguments in detail. The formula calculates the rank of a given value in a dataset between 0 and 1. It then uses this rank to determine which value in the dataset corresponds to a specified percentile.
|= PERCENTILE.INC(array, k)|| Argument 1: array (required) – This is the range of cells representing the dataset.|
Argument 2: k (required) – This is the percentile you want to find. It should be between 0 and 1.
For instance, suppose you have a dataset that contains the scores obtained by students in a class test. You can use the PERCENTILE.INC formula to determine what score corresponds to the 70th percentile. To do this, you would input the array containing the scores and 0.7 as the value of k in the formula.
It is worth noting that the function only works with inclusive percentiles, thus the name PERCENTILE.INC.
In a business use case, this formula can be used to create performance reports on sales or any measurable metric to determine the threshold for high performers of the company.
Imagine a business sector where 3 companies are in competition and have various profits during a year. PERCENTILE.INC can be utilized to gauge exactly how much these companies are performing against each other. Here, the formula would be used where the values would be the three companies’ profits and the percentile as 0.5. The value that the formula will generate will represent the 50th percentile of profit in the dataset. This information can help one to determine which company is performing poorly and needs improvement.
To conclude, understanding the syntax and arguments of the PERCENTILE.INC Excel formula helps in deriving valuable insights and ratios for data analysis in both an academic and business setting.
Examples of using PERCENTILE.INC with different data sets
Examples of utilizing PERCENTILE.INC with varying datasets are presented below, demonstrating its functionality in calculating percentiles based on given data values.
Notably, PERCENTILE.INC calculates the nth percentile within a dataset, with the optional inclusion of text-values for a given percentage.
A side-note: PERCENTRANK.EXC operates similarly but calculates the rank of a value within a given data array; both PERCENTILE.INC and PERCENTRANK.EXC are useful functions for statistical analysis.
Pro Tip: Utilize the PERCENTILE.INC function in tandem with other statistical formulas, such as AVERAGE and STDEV, to create a comprehensive understanding of a given dataset’s distribution.
Comparing PERCENTILE.INC with other percentile formulas in Excel
When it comes to percentile calculations in Excel, several formulas are available. To understand the nuances of each formula, it is essential to compare them with each other. Here, we will delve into a detailed comparison of the PERCENTILE.INC formula with other percentile formulas.
|PERCENTILE.INC||Returns the k-th percentile of values in a range, where k is in the range 0 to 1, inclusive.||Highest accuracy||Preferred for non-parametric analysis and is used to calculate percentiles and quartiles.|
|PERCENTILE||Similar to PERCENTILE.INC, but k is in the range 0 to 1, exclusive.||Less accurate than PERCENTILE.INC||Legacy function used in Excel 2003 or earlier versions.|
|PERCENTRANK.INC||Returns the percentage rank of a given value in a data set, between 0 and 1, inclusive.||High accuracy||Used for non-parametric analysis and to assess the relative standing of a value within a range of data.|
|PERCENTRANK.EXC||Similar to PERCENTRANK.INC, but k is in the range 0 to 1, exclusive.||Less accurate than PERCENTRANK.INC||Legacy function used in Excel 2003 or earlier versions.|
It is worth noting that, while all of these formulas involve percentile calculations, they have different accuracies and purposes. PERCENTILE.INC is the most accurate formula among the four and is preferred for non-parametric analysis to calculate percentiles and quartiles. In contrast, PERCENTRANK.INC is used to assess the relative standing of a value within a range of data. The other two formulas, PERCENTILE and PERCENTRANK.EXC, are legacy functions used in Excel 2003 or earlier versions.
Tips and tricks for using PERCENTILE.INC effectively
When working with PERCENTILE.INC in Excel, it is important to understand some tips and tricks that can help improve its effectiveness. Here are some useful insights:
- Begin by understanding the requirements of the function and enter the necessary data accordingly.
- Use the function in conjunction with other formulae, such as AVERAGE and MEDIAN, to obtain a more comprehensive understanding of the data.
- Experiment with different percentile values to obtain a more accurate representation of the data.
- Ensure that the data set is complete and free from any outliers or errors.
- Use conditional formatting to highlight values that fall outside the range of the data set.
- Utilize the PERCENTRANK.EXC function to obtain the percentile rank of a value within a data set.
In addition to these tips, it is important to note that the accuracy of the PERCENTILE.INC function can be affected by the size of the data set. Therefore, it is recommended to use it in conjunction with other statistical methods for a clearer understanding of the data.
As for a true history, the PERCENTILE.INC function was introduced in Excel 2010 as an improvement over the existing PERCENTILE function, which had limitations in terms of accuracy and flexibility. The new function addressed these issues and has since become a powerful tool for data analysis in Excel.
FAQs about Percentile.Inc: Excel Formulae Explained
What is PERCENTILE.INC in Excel?
PERCENTILE.INC is an Excel function that calculates the k-th percentile value of a set of data, including a specified percentage of values above and below the calculated value.
What is the syntax for PERCENTILE.INC?
The syntax for PERCENTILE.INC is:
How does PERCENTILE.INC differ from PERCENTILE.EXC?
PERCENTILE.INC and PERCENTILE.EXC both calculate percentiles, but they differ in how they handle the endpoints of the data set. PERCENTILE.INC includes both endpoints in the calculation, while PERCENTILE.EXC excludes them.
Can PERCENTILE.INC handle non-numeric values?
No, PERCENTILE.INC can only handle numeric values. If the data includes non-numeric values, such as text or blank cells, the function will return a #VALUE! error.
Can PERCENTILE.INC handle arrays with multiple dimensions?
Yes, PERCENTILE.INC can handle arrays with multiple dimensions as long as they are entered correctly in the formula.
What are some practical uses for PERCENTILE.INC?
PERCENTILE.INC can be used in a variety of statistical analyses, such as identifying outliers in a data set or calculating the distribution of test scores. It is also commonly used in finance to determine the value at risk.