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 = 2,008,102.06, v2 = 2,222,563.5.
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: - 94.
- Choose a random positive number for the end value: 43.
Formula and calculation:
(v1 - v2) / v1 =
(- 94 - 43) / - 94 =
-137 / - 94 ≈
1.457446808511 ≈
1.46
Although the absolute difference is negative: -137, the relative decrease change is positive: 1.46. 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:
(2,008,102.06 - 2,222,563.5)/|2,008,102.06| =
- 214,461.44/2,008,102.06 =
- 214,461.44 ÷ 2,008,102.06 =
- 214,461.44 ÷ 2,008,102.06 × 100/100 =
(- 214,461.44 × 100 ÷ 2,008,102.06)/100 =
(- 21,446,144 ÷ 2,008,102.06)/100 ≈
- 10.679807778296/100 =
- 10.679807778296% ≈
- 10.68%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 2,008,102.06 to the final, end value 2,222,563.5:
Rounded off to max. 12 decimal places ≈ - 10.679807778296%
Rounded off to max. 2 decimal places ≈ - 10.68%
The absolute (actual) difference
2,008,102.06 - 2,222,563.5 = - 214,461.44
By what percentage has 2,008,102.06 decreased?
Answer: By ≈ - 10.68%
By what percentage is 2,222,563.5 smaller than 2,008,102.06?
Answer: By ≈ - 10.68%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).