The relative decrease change. Definition:
The relative decrease change is the difference in an indicator over two periods in time, v1 - v2, relative to the value of the indicator in the earlier period, v1.
- Where:
- v1 - is called the reference value (original, initial number);
- v2 - is called the new value (the end value).
- In our case: v1 = 1.005, v2 = - 12.9.
The relative decrease change. Formula:
The relative decrease change =
The actual change / |v1|
(v1 - v2) / |v1| =
- Legend:
- v1 - the original number
- |v1| - the positive value of v1, |v1| >= 0. By example: |10| = 10; |-10| = 10.
- v2 - the new value
- The actual change = v1 - v2
- / - the fraction bar (division)
Why do we use |v1| in the formula instead of v1?
- Let's see what happens if we use v1 instead of |v1|:
- Choose a random negative number as the initial value: - 37.
- Choose a random positive number for the end value: 83.
Formula and calculation:
(v1 - v2) / v1 =
(- 37 - 83) / - 37 =
-120 / - 37 ≈
3.243243243243 ≈
3.24
Although the absolute difference is negative: -120, the relative decrease change is positive: 3.24. By using |v1| instead of v1, the error is corrected.
The relative percent decrease change. Detailed calculations below
By multiplying a number by the fraction 100/100,
we change only the form of the result, not the result.
- 100/100 = 100% = 100 ÷ 100 = 1.
- n × 100/100 = (n × 100)/100 = (n × 100)%, any number.
The relative percent decrease change. Formula:
The relative percent decrease change =
The relative decrease change × 100/100 =
(The relative decrease change × 100)/100 =
(The relative decrease change × 100)%
Calculate the relative percent decrease change:
(1.005 - (- 12.9))/|1.005| =
(1.005 + 12.9)/|1.005| =
13.905/1.005 =
13.905 ÷ 1.005 =
13.905 ÷ 1.005 × 100/100 =
(13.905 × 100 ÷ 1.005)/100 =
(1,390.5 ÷ 1.005)/100 ≈
1,383.582089552239/100 =
1,383.582089552239% ≈
1,383.58%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 1.005 to the final, end value - 12.9:
Rounded off to max. 12 decimal places ≈ 1,383.582089552239%
Rounded off to max. 2 decimal places ≈ 1,383.58%
The absolute (actual) difference
1.005 + 12.9 = 13.905 ≈ 13.91
By what percentage has 1.005 decreased?
Answer: By ≈ 1,383.58%
By what percentage is - 12.9 smaller than 1.005?
Answer: By ≈ 1,383.58%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).