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 = 187.43, v2 = - 213.7.
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: - 54.
- Choose a random positive number for the end value: 43.
Formula and calculation:
(v1 - v2) / v1 =
(- 54 - 43) / - 54 =
-97 / - 54 ≈
1.796296296296 ≈
1.8
Although the absolute difference is negative: -97, the relative decrease change is positive: 1.8. 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:
(187.43 - (- 213.7))/|187.43| =
(187.43 + 213.7)/|187.43| =
401.13/187.43 =
401.13 ÷ 187.43 =
401.13 ÷ 187.43 × 100/100 =
(401.13 × 100 ÷ 187.43)/100 =
(40,113 ÷ 187.43)/100 ≈
214.01589926906/100 =
214.01589926906% ≈
214.02%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 187.43 to the final, end value - 213.7:
Rounded off to max. 12 decimal places ≈ 214.01589926906%
Rounded off to max. 2 decimal places ≈ 214.02%
The absolute (actual) difference
187.43 + 213.7 = 401.13
By what percentage has 187.43 decreased?
Answer: By ≈ 214.02%
By what percentage is - 213.7 smaller than 187.43?
Answer: By ≈ 214.02%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).