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 = 113,451, v2 = - 58.7.
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: - 11.
- Choose a random positive number for the end value: 43.
Formula and calculation:
(v1 - v2) / v1 =
(- 11 - 43) / - 11 =
-54 / - 11 ≈
4.909090909091 ≈
4.91
Although the absolute difference is negative: -54, the relative decrease change is positive: 4.91. 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:
(113,451 - (- 58.7))/|113,451| =
(113,451 + 58.7)/|113,451| =
113,509.7/113,451 =
113,509.7 ÷ 113,451 =
113,509.7 ÷ 113,451 × 100/100 =
(113,509.7 × 100 ÷ 113,451)/100 =
(11,350,970 ÷ 113,451)/100 ≈
100.051740398939/100 =
100.051740398939% ≈
100.05%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 113,451 to the final, end value - 58.7:
Rounded off to max. 12 decimal places ≈ 100.051740398939%
Rounded off to max. 2 decimal places ≈ 100.05%
The absolute (actual) difference
113,451 + 58.7 = 113,509.7
By what percentage has 113,451 decreased?
Answer: By ≈ 100.05%
By what percentage is - 58.7 smaller than 113,451?
Answer: By ≈ 100.05%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).