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 = 996,909, v2 = 1,300,164.2.
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: - 31.
- Choose a random positive number for the end value: 100.
Formula and calculation:
(v1 - v2) / v1 =
(- 31 - 100) / - 31 =
-131 / - 31 ≈
4.225806451613 ≈
4.23
Although the absolute difference is negative: -131, the relative decrease change is positive: 4.23. 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:
(996,909 - 1,300,164.2)/|996,909| =
- 303,255.2/996,909 =
- 303,255.2 ÷ 996,909 =
- 303,255.2 ÷ 996,909 × 100/100 =
(- 303,255.2 × 100 ÷ 996,909)/100 =
(- 30,325,520 ÷ 996,909)/100 ≈
- 30.419546819218/100 =
- 30.419546819218% ≈
- 30.42%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 996,909 to the final, end value 1,300,164.2:
Rounded off to max. 12 decimal places ≈ - 30.419546819218%
Rounded off to max. 2 decimal places ≈ - 30.42%
The absolute (actual) difference
996,909 - 1,300,164.2 = - 303,255.2
By what percentage has 996,909 decreased?
Answer: By ≈ - 30.42%
By what percentage is 1,300,164.2 smaller than 996,909?
Answer: By ≈ - 30.42%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).