Question

In a study collecting data about the repair costs of damage to automobiles in a certain type of crash test, a certain model of car had $\$1700$in damage and was in the ${90}^{th}$ percentile. Should the manufacturer and the consumer be pleased or upset by this result? Explain and write a sentence that interprets the ${90}^{th}$ percentile in the context of this problem.

Short answer

The higher cost gives benefits to the manufacturer but it is very unpleasant for the consumer.

Step-by-step solution

Definition

In statistics, the percentiles are the partition values. Percentile divides the entire data into $100$equal parts. The ${50}^{th}$percentiles denote median and below this value lies $50\%$of data. Similarly ${60}^{th}$percentile will have $60\%$of data below it.

Explanation

The cost for repair $\$1700$is on the upper side among all possible repair costs since this cost is in ${90}^{th}$percentile. So this much of higher cost of repair gives pleasant for the manufacturer but it is very unpleasant for the consumer.

${90}^{th}$percentile means if we divide all possible repair prices into$100$separate divisions this$\$1700$is in at the${90}^{th}$ position of all possible repair prices.