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 = 0.167, v2 = 2.86.
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: - 79.
- Choose a random positive number for the end value: 63.
Formula and calculation:
(v1 - v2) / v1 =
(- 79 - 63) / - 79 =
-142 / - 79 ≈
1.79746835443 ≈
1.8
Although the absolute difference is negative: -142, the relative decrease change is positive: 1.8. 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:
(0.167 - 2.86)/|0.167| =
- 2.693/0.167 =
- 2.693 ÷ 0.167 =
- 2.693 ÷ 0.167 × 100/100 =
(- 2.693 × 100 ÷ 0.167)/100 =
(- 269.3 ÷ 0.167)/100 ≈
- 1,612.574850299401/100 =
- 1,612.574850299401% ≈
- 1,612.57%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 0.167 to the final, end value 2.86:
Rounded off to max. 12 decimal places ≈ - 1,612.574850299401%
Rounded off to max. 2 decimal places ≈ - 1,612.57%
The absolute (actual) difference
0.167 - 2.86 = - 2.693 ≈ - 2.69
By what percentage has 0.167 decreased?
Answer: By ≈ - 1,612.57%
By what percentage is 2.86 smaller than 0.167?
Answer: By ≈ - 1,612.57%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).