Question of the Week

Deciles, percentiles, quintiles and quartiles divide a distribution into how many portions, respectively?

a) Fifths, quarters, tenths, hundredths
b) Quarters, tenths, hundredths, fifths
c) Tenths, hundredths, fifths, quarters
d) Hundredths, fifths, tenths, quarters
e) Tenths, hundredths, quarters, fifths

Answer:

The correct answer is c.

Deciles, percentiles, quintiles and quartiles divide a distribution into tenths, hundredths, fifths and quarters respectively. These are all types of quantiles and are used frequently in investment research to facilitate the comparison of large firms to small firms.