A tool that determines where a specific result ranks within a distribution of results is a valuable asset. For example, a student scoring 85 on an exam might want to know how that score compares to the scores of all other students who took the same exam. This type of calculation, which places an individual data point within a broader context, provides a relative measure of performance.
Understanding the placement of an individual result allows for informed decision-making and performance evaluation. In educational settings, it provides students with feedback on their learning progress relative to their peers. Businesses use similar concepts to benchmark employee performance, analyze market trends, and assess product success. The historical development of statistical analysis has led to readily available and user-friendly methods for performing this type of calculation.