The calculation addresses the question of proportional representation, specifically determining the percentage that one numerical value constitutes of another. In this instance, the task is to express 20 as a percentage of 65. To achieve this, the smaller number (20) is divided by the larger number (65), and the resulting decimal is then multiplied by 100. This operation yields the percentage equivalent.
Understanding proportional relationships is fundamental across diverse fields. It is essential in financial analysis for calculating profit margins or expense ratios. It also plays a critical role in statistics, allowing for the interpretation of data and the comparison of sample sizes. Historically, the concept of percentages has been vital in trade, commerce, and taxation, facilitating standardized comparisons and equitable distribution.