ChatterBank0 min ago
Do percentages make sense?
From time to time I read news items such as: Falls in property prices slowed to 6.2% - 6.2% of what? Use of sunbeds raises the cancer risk by 75% - 75% of what? To me 75% means 'something' divided by a hundred and multiplied by 75. Without knowing what the 'something' figure is to start with it's meaningless to report in terms of percentages. How do other Abers interpret this kind of information?
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For more on marking an answer as the "Best Answer", please visit our FAQ.They also don't always mean percent they mean percentage points. Eg they often say things like "inflation has dropped 1 percent" what they mean is that it has dropped 1 percentage point.
In the cases you specify the property prices one means that based on last years prices today's are 93.8% of that.
In the sunbed case it is more of a probability figure than a percentage, they are saying that a sunbed user is more likely to get skin cancer than a non sunbed user by 1.75 ie 100% would be twice as likely.
In the cases you specify the property prices one means that based on last years prices today's are 93.8% of that.
In the sunbed case it is more of a probability figure than a percentage, they are saying that a sunbed user is more likely to get skin cancer than a non sunbed user by 1.75 ie 100% would be twice as likely.
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Let�s have a look at one of the examples you quote and see if I can help.
�Falls in property prices slowed to 6.2% - 6.2% of what?�
Property price changes are measured monthly and the annual change is the one usually quoted. So if average house prices were, say �100,000 last year (a bit low, I know, but it makes the numbers easy) and they are now �95,000, then they fell by �5,000 on a base of �100,000 which equals 5%. So the average price this year is 5% lower than the average last year. If they fall by another �5,000 in the following year, this time the base figure is �95,000, so the fall is 5,000 divided by 95,000 which is 5.26%. So the statement you mentioned explains that property prices have fallen by 6.2% in the last year and that this fall is less than had been measured previously.
�Percent� is simply a way of reducing the base to 100. In the example above It is easier to say five percent than five thousand one hundred thousandths, or five thousand ninety-five thousandths. Percentages are not designed to obscure as scotman suggests. On the contrary, they are used to make understanding simpler.
With any sort of statistical quote you have to understand a bit of the background to the issue under discussion so that you can interpret the figures sensibly.
�Falls in property prices slowed to 6.2% - 6.2% of what?�
Property price changes are measured monthly and the annual change is the one usually quoted. So if average house prices were, say �100,000 last year (a bit low, I know, but it makes the numbers easy) and they are now �95,000, then they fell by �5,000 on a base of �100,000 which equals 5%. So the average price this year is 5% lower than the average last year. If they fall by another �5,000 in the following year, this time the base figure is �95,000, so the fall is 5,000 divided by 95,000 which is 5.26%. So the statement you mentioned explains that property prices have fallen by 6.2% in the last year and that this fall is less than had been measured previously.
�Percent� is simply a way of reducing the base to 100. In the example above It is easier to say five percent than five thousand one hundred thousandths, or five thousand ninety-five thousandths. Percentages are not designed to obscure as scotman suggests. On the contrary, they are used to make understanding simpler.
With any sort of statistical quote you have to understand a bit of the background to the issue under discussion so that you can interpret the figures sensibly.
If it is said inflation has fallen 1% and it had been 10%, does that mean it is now 9% or 9.9%? Reporters often say it has fallen by A% from B to C%, why can they not just say it has fallen from B to C%?
What winds me up is when folk say four times less (for example) when what they mean it is 1/4 of what it was.
What winds me up is when folk say four times less (for example) when what they mean it is 1/4 of what it was.