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 = 223,825, v2 = 200,750.9.
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: - 31.
- Choose a random positive number for the end value: 45.
Formula and calculation:
(v1 - v2) / v1 =
(- 31 - 45) / - 31 =
-76 / - 31 ≈
2.451612903226 ≈
2.45
Although the absolute difference is negative: -76, the relative decrease change is positive: 2.45. 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:
(223,825 - 200,750.9)/|223,825| =
23,074.1/223,825 =
23,074.1 ÷ 223,825 =
23,074.1 ÷ 223,825 × 100/100 =
(23,074.1 × 100 ÷ 223,825)/100 =
(2,307,410 ÷ 223,825)/100 ≈
10.308991399531/100 =
10.308991399531% ≈
10.31%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 223,825 to the final, end value 200,750.9:
Rounded off to max. 12 decimal places ≈ 10.308991399531%
Rounded off to max. 2 decimal places ≈ 10.31%
The absolute (actual) difference
223,825 - 200,750.9 = 23,074.1
By what percentage has 223,825 decreased?
Answer: By ≈ 10.31%
By what percentage is 200,750.9 smaller than 223,825?
Answer: By ≈ 10.31%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).