Data analysis is an important domain that helps convert the data into meaningful value or insights. It primarily consists of quantitative and qualitative data analysis. The percentage is important in mathematics as well as data analysis. It is represented by the symbol % and a fraction with 100 as the denominator. It is derived from a Latin word that means “by hundred”. To calculate the percentage of any number, the number is divided by the whole and multiplied by 100. It is used in data analysis as it helps in finding information on discrete categories and collating statistical data.
What is the Percentage formula?
The word percent is split into two parts: per and cent. Hence, it translates into per hundred. Here is the percentage formula
Percentage = Actual number/Total number x 100%
Hence, to calculate the percentage, here is the breakdown and its application:
- Actual number = It is the number for which you want to find the percentage
- Total number = It is the number with which you want to compare or find the value out of
How to find percentages in various ways?
The percentage difference between two numbers is calculated with the help of the following formula
% difference = Absolute difference of two numbers/Average of two numbers
Let us assume two numbers which are x and y. Hence, the absolute difference between the two numbers is the| x – y |, whereas the average of the two numbers is the x + y / 2.
Calculation of percent increase
The percent increase is the % change in the value as it increases over time. For example – an increase in the percentage of income, an increase in the population, etc. Hence, it is calculated by using the following formulae
% Increase = (Increase value – Original value / Original value) x 100
Calculation of percent decrease
The percent decrease is the % change in the value that decreases over time. For example, it refers to a decrease in the % of rainfall, the number of people falling sick, etc. Hence, it is calculated by using the following percentage formula:
% decrease = (Original value – Decreased value / Original value) x 100%
Use of the percentage and its applications
Once it is understood how to find percentages, it is important to understand its applications. It is used in statistical findings and data analysis. Here are some uses and applications of percentage:
- It is used to determine “how much” and “how many” and hence helps calculate the exact figure or amount. It helps in finding out quantitative information from a set of data.
- It helps identify percentage increase or decrease as well as help find out overall profit and loss percent.
- One of the basic uses of percentages is calculating and comparing two quantities. It helps in comparing and reviewing the results and progress.
- It plays a crucial role in comparing and contrasting various topics. Hence, it helps draw a comparative analysis of various subjects or issues.
- The percentage is used to evaluate extensive data and hence presents an accurate value.
- It is important for management and data analytics as it helps calculate profit and loss. Hence, the value identifies % of growth, loss, improvement etc., for managing better operations.
- It is used in all types of operations and management, including the government, which helps make the necessary reservations and calculate all the necessary. As it converts or presents the numerical data most simply, it is used across various calculation modes and mediums.
Importance of Percentage in Data Analysis
The process of data analysis helps in gaining insight from data. It is the process of inspecting, narrowing, transforming, and modelling data from a huge amount of information or data. The percentage is one of the essential components of data analysis, which helps find a value from a huge amount of data and information. The data is examined, and hence the conclusion is drawn for expanding knowledge and decision on various subjects.
- The percentage is used across many domains and hence is used to express various things like discounts, bank interest rates, rates of inflation, media data, etc. It is a good and important quantifier of financial aspects.
- It is used in expressing various types of observable changes or factors like sales, losses, market share, etc. Hence, it helps in converting data into mathematical values.
- The calculation of percentages requires understanding and application of arithmetic. Hence, it helps understand the year-on-year changes and comparisons in the data.
Conclusion
The percentage is one of the most important concepts that help in data analysis and comparison. It is important for solving many business-related questions and hence is expressed as %. It is the number or ratio expressed as a fraction of 100. Hence, with the decrease in the percentage, it is defined as the % change in value when decreased with time. However, the increase in the percentage is the % change in the value which increases with time. The article provides comprehensive information about the use of percentages, percentage formulas, and their applications.
