# Level 1 CFA® Exam: Measures of Location (Computing Percentile)

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*This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam.*

Thanks to this short post, you can recall an important level 1 CFA exam formula and get a useful piece of advice related to measures of location and a practical tip.

## Formula for the Location of a Percentile

\(L_y=(n+1)\times\frac{y}{100}\)

- Where:
- \(y\) – percentile,
- \(L_y\) – location of the percentile,
- \(n\) – number of observations.

### Remember!

Before computing any measure of location (like percentile, median, etc.), sort observations in ascending or descending order.

## Measures of Location: Practical Tip

If the location of the percentile is not an integer, we need to apply linear interpolation to compute this percentile. Have a look at the example.

__Example__:

There is a set of numbers given in ascending order: 2, 12, 23, 34, 45, 55, 65, 83, 87, and 89. Determine the value of the 20th percentile.

__Solution__:

\(n=10\)

\(L_{20}=(n+1)\times\frac{20}{100}=(10+1)\times\frac{20}{100}=2.2\)

\(P_{20}=X_2+(2.2-2)\times(X_3-X_2)=\\=12+0.2\times(23-12)=12+0.2\times11=14.2\)

LAST UPDATE: 2 Nov 2023

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