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 = 89.99, v2 = 12.9.
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: - 38.
- Choose a random positive number for the end value: 25.
Formula and calculation:
(v1 - v2) / v1 =
(- 38 - 25) / - 38 =
-63 / - 38 ≈
1.657894736842 ≈
1.66
Although the absolute difference is negative: -63, the relative decrease change is positive: 1.66. 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:
(89.99 - 12.9)/|89.99| =
77.09/89.99 =
77.09 ÷ 89.99 =
77.09 ÷ 89.99 × 100/100 =
(77.09 × 100 ÷ 89.99)/100 =
(7,709 ÷ 89.99)/100 ≈
85.6650738971/100 =
85.6650738971% ≈
85.67%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 89.99 to the final, end value 12.9:
Rounded off to max. 12 decimal places ≈ 85.6650738971%
Rounded off to max. 2 decimal places ≈ 85.67%
The absolute (actual) difference
89.99 - 12.9 = 77.09
By what percentage has 89.99 decreased?
Answer: By ≈ 85.67%
By what percentage is 12.9 smaller than 89.99?
Answer: By ≈ 85.67%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).