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 = 772, v2 = 174.7.
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: - 86.
- Choose a random positive number for the end value: 9.
Formula and calculation:
(v1 - v2) / v1 =
(- 86 - 9) / - 86 =
-95 / - 86 ≈
1.104651162791 ≈
1.1
Although the absolute difference is negative: -95, the relative decrease change is positive: 1.1. 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:
(772 - 174.7)/|772| =
597.3/772 =
597.3 ÷ 772 =
597.3 ÷ 772 × 100/100 =
(597.3 × 100 ÷ 772)/100 =
(59,730 ÷ 772)/100 ≈
77.370466321244/100 =
77.370466321244% ≈
77.37%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 772 to the final, end value 174.7:
Rounded off to max. 12 decimal places ≈ 77.370466321244%
Rounded off to max. 2 decimal places ≈ 77.37%
The absolute (actual) difference
772 - 174.7 = 597.3
By what percentage has 772 decreased?
Answer: By ≈ 77.37%
By what percentage is 174.7 smaller than 772?
Answer: By ≈ 77.37%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).