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 = 12.95, v2 = 10.76.
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: - 66.
- Choose a random positive number for the end value: 90.
Formula and calculation:
(v1 - v2) / v1 =
(- 66 - 90) / - 66 =
-156 / - 66 ≈
2.363636363636 ≈
2.36
Although the absolute difference is negative: -156, the relative decrease change is positive: 2.36. 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:
(12.95 - 10.76)/|12.95| =
2.19/12.95 =
2.19 ÷ 12.95 =
2.19 ÷ 12.95 × 100/100 =
(2.19 × 100 ÷ 12.95)/100 =
(219 ÷ 12.95)/100 ≈
16.911196911197/100 =
16.911196911197% ≈
16.91%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 12.95 to the final, end value 10.76:
Rounded off to max. 12 decimal places ≈ 16.911196911197%
Rounded off to max. 2 decimal places ≈ 16.91%
The absolute (actual) difference
12.95 - 10.76 = 2.19
By what percentage has 12.95 decreased?
Answer: By ≈ 16.91%
By what percentage is 10.76 smaller than 12.95?
Answer: By ≈ 16.91%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).