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 = 30,000, v2 = 174.
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: - 67.
- Choose a random positive number for the end value: 54.
Formula and calculation:
(v1 - v2) / v1 =
(- 67 - 54) / - 67 =
-121 / - 67 ≈
1.805970149254 ≈
1.81
Although the absolute difference is negative: -121, the relative decrease change is positive: 1.81. 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:
(30,000 - 174)/|30,000| =
29,826/30,000 =
29,826 ÷ 30,000 =
29,826 ÷ 30,000 × 100/100 =
(29,826 × 100 ÷ 30,000)/100 =
(2,982,600 ÷ 30,000)/100 =
99.42/100 =
99.42%
The relative percent decrease change
from the original, initial value 30,000 to the final, end value 174:
= 99.42%
The absolute (actual) difference
30,000 - 174 = 29,826
By what percentage has 30,000 decreased?
Answer: By 99.42%
By what percentage is 174 smaller than 30,000?
Answer: By 99.42%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).