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 = - 49,420, v2 = - 97,216.1.
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: 25.
Formula and calculation:
(v1 - v2) / v1 =
(- 11 - 25) / - 11 =
-36 / - 11 ≈
3.272727272727 ≈
3.27
Although the absolute difference is negative: -36, the relative decrease change is positive: 3.27. 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:
(- 49,420 - (- 97,216.1))/|- 49,420| =
(- 49,420 + 97,216.1)/|- 49,420| =
47,796.1/49,420 =
47,796.1 ÷ 49,420 =
47,796.1 ÷ 49,420 × 100/100 =
(47,796.1 × 100 ÷ 49,420)/100 =
(4,779,610 ÷ 49,420)/100 ≈
96.714083367058/100 =
96.714083367058% ≈
96.71%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value - 49,420 to the final, end value - 97,216.1:
Rounded off to max. 12 decimal places ≈ 96.714083367058%
Rounded off to max. 2 decimal places ≈ 96.71%
The absolute (actual) difference
- 49,420 - (- 97,216.1) = - 49,420 + 97,216.1 = 47,796.1
By what percentage has - 49,420 decreased?
Answer: By ≈ 96.71%
By what percentage is - 97,216.1 smaller than - 49,420?
Answer: By ≈ 96.71%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).