Graduate Management Admission Test is generally taken by students who wish to take admission in a business school for further studies (i.e. for an MBA course). The GMAT scores gives the admission team of the business school an insight about the candidate’s skills in major areas like verbal, quantitative, analytical writing and computer skills. Tests are then checked and scores are allocated. GMAT scores have four yields which have independent effects and none of them influence any other category as they all measure different constructs. Each score holds a percentile ranking which gives a comparison of candidate’s score with other test takers over a period of three years thus percentile ranking can change each year with scores remaining the same for five years (test validity time period) unless the student retakes the test.

The percentage rank of the candidate’s score basically shows the percentage of students who have lower scores as compared to the scores of the candidates for a period of three years. Thus it gives the business school a comparison of candidate’s skills with the other test takers. The better you score, the greater are the chances that more number of candidates have scored lower than you whereas when other pool of candidates will appear in GMAT next time your percentile ranking may subject to change.

To understand percentile ranking method in a better way let’s have a look at this example. If your score is 690 and the percentile rank is 88%, it means that 88% of the test takers have achieved scores lower than yours which means your skills are greater or equal to 88%. Thus for that particular pool of candidates your percentile rank is 88% which may change when compared with a new pool of candidates next or same year.

Percentile ranking is very useful in selection process for business schools, due to the fact that it makes comparisons easy and thus gives the school’s admission team an idea of candidate’s exact skills and talent. Thus while taking the GMAT, the aim of the candidate should be to secure comparatively good scores. No doubt preparation is very important to score well in GMAT, but keeping in mind this comparative marking or percentile ranking method gives the candidate a fair idea of efforts he / she needs to put in to get comparatively good grades. Understanding percentile ranking makes it easy for candidate to know how GMAT scoring method works and how his/her answers will be ranked.

Now when you know the GMAT scores and percentile ranking system, you must start preparing for the test keeping in mind that your scores will be compared with all other candidates and that your admission will depend upon this comparison as well. There are definitely some very talented people in this world, therefore you need to be prepared well to score as high as possible and get a good percentile, ultimately providing you with admission in to your dream institute; after all, your future depends on it and the castle of your dreams is more likely to become a reality when you complete your studies from a good and reputable institute.