The 98th percentile represents a value above which 98% of the data in a given set falls. For instance, if an individual’s score on a standardized test is in the 98th percentile, this signifies that the individual performed better than 98% of the other test takers.
Understanding percentile rankings is crucial for interpreting performance within a group. It offers a standardized way to compare individual achievements against a larger population, removing the ambiguity of raw scores. Historically, percentiles have been used in education, healthcare, and finance to benchmark performance and identify outliers or individuals requiring specific attention or resources.