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 = 41,847.67, v2 = 14,983.42.
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: - 57.
- Choose a random positive number for the end value: 63.
Formula and calculation:
(v1 - v2) / v1 =
(- 57 - 63) / - 57 =
-120 / - 57 ≈
2.105263157895 ≈
2.11
Although the absolute difference is negative: -120, the relative decrease change is positive: 2.11. 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:
(41,847.67 - 14,983.42)/|41,847.67| =
26,864.25/41,847.67 =
26,864.25 ÷ 41,847.67 =
26,864.25 ÷ 41,847.67 × 100/100 =
(26,864.25 × 100 ÷ 41,847.67)/100 =
(2,686,425 ÷ 41,847.67)/100 =
64.195330349336/100 =
64.195330349336% ≈
64.2%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 41,847.67 to the final, end value 14,983.42:
Not rounded = 64.195330349336%
Rounded off to max. 2 decimal places ≈ 64.2%
The absolute (actual) difference
41,847.67 - 14,983.42 = 26,864.25
By what percentage has 41,847.67 decreased?
Answer: By ≈ 64.2%
By what percentage is 14,983.42 smaller than 41,847.67?
Answer: By ≈ 64.2%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).