Quick Definition

Quintiles are a statistical measure used to divide a dataset into five equal parts, each representing 20% of the population. This method is often used in finance to assess income distribution, asset allocation, or performance metrics.

Formula

Examples

• 1In income distribution analysis, the population is divided into quintiles to see how much each 20% segment earns relative to the total.
• 2Investment funds may be ranked into quintiles based on their performance to help investors identify the top 20% performing funds.
• 3In economic research, quintiles help analyze consumer spending patterns by dividing households into five groups based on income levels.
• 4Credit scoring models might use quintiles to categorize individuals' credit scores, helping lenders understand risk distribution.

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