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 = 0.62, v2 = 10.3.
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: - 93.
- Choose a random positive number for the end value: 8.
Formula and calculation:
(v1 - v2) / v1 =
(- 93 - 8) / - 93 =
-101 / - 93 ≈
1.086021505376 ≈
1.09
Although the absolute difference is negative: -101, the relative decrease change is positive: 1.09. 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:
(0.62 - 10.3)/|0.62| =
- 9.68/0.62 =
- 9.68 ÷ 0.62 =
- 9.68 ÷ 0.62 × 100/100 =
(- 9.68 × 100 ÷ 0.62)/100 =
(- 968 ÷ 0.62)/100 ≈
- 1,561.290322580645/100 =
- 1,561.290322580645% ≈
- 1,561.29%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 0.62 to the final, end value 10.3:
Rounded off to max. 12 decimal places ≈ - 1,561.290322580645%
Rounded off to max. 2 decimal places ≈ - 1,561.29%
The absolute (actual) difference
0.62 - 10.3 = - 9.68
By what percentage has 0.62 decreased?
Answer: By ≈ - 1,561.29%
By what percentage is 10.3 smaller than 0.62?
Answer: By ≈ - 1,561.29%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).