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 = 16,044, v2 = 15,123.3.
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: - 65.
- Choose a random positive number for the end value: 96.
Formula and calculation:
(v1 - v2) / v1 =
(- 65 - 96) / - 65 =
-161 / - 65 =
2.476923076923 ≈
2.48
Although the absolute difference is negative: -161, the relative decrease change is positive: 2.48. 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:
(16,044 - 15,123.3)/|16,044| =
920.7/16,044 =
920.7 ÷ 16,044 =
920.7 ÷ 16,044 × 100/100 =
(920.7 × 100 ÷ 16,044)/100 =
(92,070 ÷ 16,044)/100 ≈
5.738593866866/100 =
5.738593866866% ≈
5.74%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 16,044 to the final, end value 15,123.3:
Rounded off to max. 12 decimal places ≈ 5.738593866866%
Rounded off to max. 2 decimal places ≈ 5.74%
The absolute (actual) difference
16,044 - 15,123.3 = 920.7
By what percentage has 16,044 decreased?
Answer: By ≈ 5.74%
By what percentage is 15,123.3 smaller than 16,044?
Answer: By ≈ 5.74%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).