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 = 14,300, v2 = 163.1.
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: - 75.
- Choose a random positive number for the end value: 98.
Formula and calculation:
(v1 - v2) / v1 =
(- 75 - 98) / - 75 =
-173 / - 75 ≈
2.306666666667 ≈
2.31
Although the absolute difference is negative: -173, the relative decrease change is positive: 2.31. 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:
(14,300 - 163.1)/|14,300| =
14,136.9/14,300 =
14,136.9 ÷ 14,300 =
14,136.9 ÷ 14,300 × 100/100 =
(14,136.9 × 100 ÷ 14,300)/100 =
(1,413,690 ÷ 14,300)/100 ≈
98.859440559441/100 =
98.859440559441% ≈
98.86%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 14,300 to the final, end value 163.1:
Rounded off to max. 12 decimal places ≈ 98.859440559441%
Rounded off to max. 2 decimal places ≈ 98.86%
The absolute (actual) difference
14,300 - 163.1 = 14,136.9
By what percentage has 14,300 decreased?
Answer: By ≈ 98.86%
By what percentage is 163.1 smaller than 14,300?
Answer: By ≈ 98.86%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).