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 = 0.0146, v2 = - 2.9.
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: - 49.
- Choose a random positive number for the end value: 4.
Formula and calculation:
(v1 - v2) / v1 =
(- 49 - 4) / - 49 =
-53 / - 49 ≈
1.081632653061 ≈
1.08
Although the absolute difference is negative: -53, the relative decrease change is positive: 1.08. 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:
(0.0146 - (- 2.9))/|0.0146| =
(0.0146 + 2.9)/|0.0146| =
2.9146/0.0146 =
2.9146 ÷ 0.0146 =
2.9146 ÷ 0.0146 × 100/100 =
(2.9146 × 100 ÷ 0.0146)/100 =
(291.46 ÷ 0.0146)/100 ≈
19,963.013698630137/100 =
19,963.013698630137% ≈
19,963.01%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 0.0146 to the final, end value - 2.9:
Rounded off to max. 12 decimal places ≈ 19,963.013698630137%
Rounded off to max. 2 decimal places ≈ 19,963.01%
The absolute (actual) difference
0.0146 + 2.9 = 2.9146 ≈ 2.91
By what percentage has 0.0146 decreased?
Answer: By ≈ 19,963.01%
By what percentage is - 2.9 smaller than 0.0146?
Answer: By ≈ 19,963.01%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).