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 = 1,306, v2 = 1,180.3.
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: - 8.
- Choose a random positive number for the end value: 35.
Formula and calculation:
(v1 - v2) / v1 =
(- 8 - 35) / - 8 =
-43 / - 8 =
5.375 ≈
5.38
Although the absolute difference is negative: -43, the relative decrease change is positive: 5.38. 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:
(1,306 - 1,180.3)/|1,306| =
125.7/1,306 =
125.7 ÷ 1,306 =
125.7 ÷ 1,306 × 100/100 =
(125.7 × 100 ÷ 1,306)/100 =
(12,570 ÷ 1,306)/100 ≈
9.624808575804/100 =
9.624808575804% ≈
9.62%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 1,306 to the final, end value 1,180.3:
Rounded off to max. 12 decimal places ≈ 9.624808575804%
Rounded off to max. 2 decimal places ≈ 9.62%
The absolute (actual) difference
1,306 - 1,180.3 = 125.7
By what percentage has 1,306 decreased?
Answer: By ≈ 9.62%
By what percentage is 1,180.3 smaller than 1,306?
Answer: By ≈ 9.62%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).