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 = 51,519, v2 = 11,721.
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: - 98.
- Choose a random positive number for the end value: 79.
Formula and calculation:
(v1 - v2) / v1 =
(- 98 - 79) / - 98 =
-177 / - 98 ≈
1.80612244898 ≈
1.81
Although the absolute difference is negative: -177, the relative decrease change is positive: 1.81. 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:
(51,519 - 11,721)/|51,519| =
39,798/51,519 =
39,798 ÷ 51,519 =
39,798 ÷ 51,519 × 100/100 =
(39,798 × 100 ÷ 51,519)/100 =
(3,979,800 ÷ 51,519)/100 =
77.249170209049/100 =
77.249170209049% ≈
77.25%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 51,519 to the final, end value 11,721:
Not rounded = 77.249170209049%
Rounded off to max. 2 decimal places ≈ 77.25%
The absolute (actual) difference
51,519 - 11,721 = 39,798
By what percentage has 51,519 decreased?
Answer: By ≈ 77.25%
By what percentage is 11,721 smaller than 51,519?
Answer: By ≈ 77.25%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).