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 = 0.55, v2 = - 27.4.
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: - 29.
- Choose a random positive number for the end value: 20.
Formula and calculation:
(v1 - v2) / v1 =
(- 29 - 20) / - 29 =
-49 / - 29 ≈
1.689655172414 ≈
1.69
Although the absolute difference is negative: -49, the relative decrease change is positive: 1.69. 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:
(0.55 - (- 27.4))/|0.55| =
(0.55 + 27.4)/|0.55| =
27.95/0.55 =
27.95 ÷ 0.55 =
27.95 ÷ 0.55 × 100/100 =
(27.95 × 100 ÷ 0.55)/100 =
(2,795 ÷ 0.55)/100 ≈
5,081.818181818182/100 =
5,081.818181818182% ≈
5,081.82%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 0.55 to the final, end value - 27.4:
Rounded off to max. 12 decimal places ≈ 5,081.818181818182%
Rounded off to max. 2 decimal places ≈ 5,081.82%
The absolute (actual) difference
0.55 + 27.4 = 27.95
By what percentage has 0.55 decreased?
Answer: By ≈ 5,081.82%
By what percentage is - 27.4 smaller than 0.55?
Answer: By ≈ 5,081.82%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).