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 = 1,313, v2 = 1,168.1.
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: - 5.
- Choose a random positive number for the end value: 95.
Formula and calculation:
(v1 - v2) / v1 =
(- 5 - 95) / - 5 =
-100 / - 5 =
20
Although the absolute difference is negative: -100, the relative decrease change is positive: 20. 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:
(1,313 - 1,168.1)/|1,313| =
144.9/1,313 =
144.9 ÷ 1,313 =
144.9 ÷ 1,313 × 100/100 =
(144.9 × 100 ÷ 1,313)/100 =
(14,490 ÷ 1,313)/100 =
11.035795887281/100 =
11.035795887281% ≈
11.04%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 1,313 to the final, end value 1,168.1:
Not rounded = 11.035795887281%
Rounded off to max. 2 decimal places ≈ 11.04%
The absolute (actual) difference
1,313 - 1,168.1 = 144.9
By what percentage has 1,313 decreased?
Answer: By ≈ 11.04%
By what percentage is 1,168.1 smaller than 1,313?
Answer: By ≈ 11.04%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).