What is a percentage point?

What is a percentage point?

• A. The difference between two percentages
• B. The percentage of a total
• C. The ratio of two quantities
• D. The percentage change over time

Answer: (A)

A percentage point is the absolute difference between two percentages. It’s what you get when you simply subtract one percentage from another, without regard to the size of the original percentage. For example, moving from 60% to 70% is an increase of 10 percentage points, not a 10% increase. That distinction matters because a 10% increase would mean a relative change from 60% to 66%. The other options describe different ideas: a proportion or part of a total is a percentage of a whole, a ratio compares two quantities, and a percentage change over time is the relative change from one value to another across time.

A percentage point is the absolute difference between two percentages. It’s what you get when you simply subtract one percentage from another, without regard to the size of the original percentage. For example, moving from 60% to 70% is an increase of 10 percentage points, not a 10% increase. That distinction matters because a 10% increase would mean a relative change from 60% to 66%. The other options describe different ideas: a proportion or part of a total is a percentage of a whole, a ratio compares two quantities, and a percentage change over time is the relative change from one value to another across time.