The cumulative frequency divided by the total number of observations computes:

When calculating the cumulative frequency divided by the total number of observations, the result is referred to as the cumulative percentage. This metric provides insight into the proportion of observations that fall within the cumulative frequency up to a certain point in a dataset, expressed as a percentage of the total number of observations.

Cumulative percentage is particularly useful in statistics and data analysis because it allows for a clearer understanding of the distribution of data points. By showing how many observations are accounted for from the lowest value up to a certain value, analysts can quickly gauge where the majority of data lies and how data accumulates.

This concept is foundational in creating cumulative frequency distributions, which help visualize and interpret data. In practice, using cumulative percentages can be effective for identifying trends and understanding the overall landscape of the data being analyzed.