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 = 123, v2 = 181.2.
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: - 34.
- Choose a random positive number for the end value: 48.
Formula and calculation:
(v1 - v2) / v1 =
(- 34 - 48) / - 34 =
-82 / - 34 ≈
2.411764705882 ≈
2.41
Although the absolute difference is negative: -82, the relative decrease change is positive: 2.41. 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:
(123 - 181.2)/|123| =
- 58.2/123 =
- 58.2 ÷ 123 =
- 58.2 ÷ 123 × 100/100 =
(- 58.2 × 100 ÷ 123)/100 =
(- 5,820 ÷ 123)/100 ≈
- 47.317073170732/100 =
- 47.317073170732% ≈
- 47.32%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 123 to the final, end value 181.2:
Rounded off to max. 12 decimal places ≈ - 47.317073170732%
Rounded off to max. 2 decimal places ≈ - 47.32%
The absolute (actual) difference
123 - 181.2 = - 58.2
By what percentage has 123 decreased?
Answer: By ≈ - 47.32%
By what percentage is 181.2 smaller than 123?
Answer: By ≈ - 47.32%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).