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 = 1,564, v2 = 1,100,412.2.
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: - 94.
- Choose a random positive number for the end value: 34.
Formula and calculation:
(v1 - v2) / v1 =
(- 94 - 34) / - 94 =
-128 / - 94 ≈
1.36170212766 ≈
1.36
Although the absolute difference is negative: -128, the relative decrease change is positive: 1.36. 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:
(1,564 - 1,100,412.2)/|1,564| =
- 1,098,848.2/1,564 =
- 1,098,848.2 ÷ 1,564 =
- 1,098,848.2 ÷ 1,564 × 100/100 =
(- 1,098,848.2 × 100 ÷ 1,564)/100 =
(- 109,884,820 ÷ 1,564)/100 ≈
- 70,258.83631713555/100 =
- 70,258.83631713555% ≈
- 70,258.84%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 1,564 to the final, end value 1,100,412.2:
Rounded off to max. 12 decimal places ≈ - 70,258.83631713555%
Rounded off to max. 2 decimal places ≈ - 70,258.84%
The absolute (actual) difference
1,564 - 1,100,412.2 = - 1,098,848.2
By what percentage has 1,564 decreased?
Answer: By ≈ - 70,258.84%
By what percentage is 1,100,412.2 smaller than 1,564?
Answer: By ≈ - 70,258.84%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).