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 = 7,000, v2 = 2.4.
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: - 89.
- Choose a random positive number for the end value: 38.
Formula and calculation:
(v1 - v2) / v1 =
(- 89 - 38) / - 89 =
-127 / - 89 ≈
1.426966292135 ≈
1.43
Although the absolute difference is negative: -127, the relative decrease change is positive: 1.43. 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:
(7,000 - 2.4)/|7,000| =
6,997.6/7,000 =
6,997.6 ÷ 7,000 =
6,997.6 ÷ 7,000 × 100/100 =
(6,997.6 × 100 ÷ 7,000)/100 =
(699,760 ÷ 7,000)/100 ≈
99.965714285714/100 =
99.965714285714% ≈
99.97%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 7,000 to the final, end value 2.4:
Rounded off to max. 12 decimal places ≈ 99.965714285714%
Rounded off to max. 2 decimal places ≈ 99.97%
The absolute (actual) difference
7,000 - 2.4 = 6,997.6
By what percentage has 7,000 decreased?
Answer: By ≈ 99.97%
By what percentage is 2.4 smaller than 7,000?
Answer: By ≈ 99.97%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).