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 = 13,167, v2 = 14,765.9.
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: - 78.
- Choose a random positive number for the end value: 75.
Formula and calculation:
(v1 - v2) / v1 =
(- 78 - 75) / - 78 =
-153 / - 78 ≈
1.961538461538 ≈
1.96
Although the absolute difference is negative: -153, the relative decrease change is positive: 1.96. 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:
(13,167 - 14,765.9)/|13,167| =
- 1,598.9/13,167 =
- 1,598.9 ÷ 13,167 =
- 1,598.9 ÷ 13,167 × 100/100 =
(- 1,598.9 × 100 ÷ 13,167)/100 =
(- 159,890 ÷ 13,167)/100 ≈
- 12.143236880079/100 =
- 12.143236880079% ≈
- 12.14%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 13,167 to the final, end value 14,765.9:
Rounded off to max. 12 decimal places ≈ - 12.143236880079%
Rounded off to max. 2 decimal places ≈ - 12.14%
The absolute (actual) difference
13,167 - 14,765.9 = - 1,598.9
By what percentage has 13,167 decreased?
Answer: By ≈ - 12.14%
By what percentage is 14,765.9 smaller than 13,167?
Answer: By ≈ - 12.14%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).