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Percentage point facts for kids

Kids Encyclopedia Facts

A percentage point (sometimes called a percent point) is a special way to measure the difference between two percentages. It's a unit that helps us compare how much a percentage has changed.

For example, imagine a video game's popularity grew from 40% of players to 44% of players. The difference between these two percentages is 4. So, we say it's a 4 percentage point increase.

Understanding Percentage Points

It's easy to get percentage points mixed up with a "percent increase." They sound similar but mean different things!

Percentage Point vs. Percent Increase

Let's use our video game example:

  • If a game's popularity goes from 40% to 44%, that's a 4 percentage point increase (44% - 40% = 4 percentage points). This is a simple subtraction.
  • However, a "percent increase" tells you how much something has grown relative to its original size. To find the percent increase from 40% to 44%, you calculate the change (4 percentage points) as a percentage of the original amount (40%).

* (4 percentage points / 40%) * 100% = 10% * So, the popularity increased by 10 percent.

Why Use Percentage Points?

Percentage points are often used when talking about things like:

  • Changes in interest rates
  • Results from surveys or polls
  • Differences in election results

They help make it clear that you are talking about the direct difference between two percentages, not a percentage of a percentage.

For instance, if a politician's approval rating goes from 50% to 55%, it's a 5 percentage point increase. This is a simple way to show the change in their support. Saying it's a "10 percent increase" (because 5 is 10% of 50) might sound more dramatic, but "percentage point" is more precise for comparing percentages directly.

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