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 = 183.29, v2 = 229.5.
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: - 53.
- Choose a random positive number for the end value: 66.
Formula and calculation:
(v1 - v2) / v1 =
(- 53 - 66) / - 53 =
-119 / - 53 ≈
2.245283018868 ≈
2.25
Although the absolute difference is negative: -119, the relative decrease change is positive: 2.25. 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:
(183.29 - 229.5)/|183.29| =
- 46.21/183.29 =
- 46.21 ÷ 183.29 =
- 46.21 ÷ 183.29 × 100/100 =
(- 46.21 × 100 ÷ 183.29)/100 =
(- 4,621 ÷ 183.29)/100 ≈
- 25.211413606853/100 =
- 25.211413606853% ≈
- 25.21%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 183.29 to the final, end value 229.5:
Rounded off to max. 12 decimal places ≈ - 25.211413606853%
Rounded off to max. 2 decimal places ≈ - 25.21%
The absolute (actual) difference
183.29 - 229.5 = - 46.21
By what percentage has 183.29 decreased?
Answer: By ≈ - 25.21%
By what percentage is 229.5 smaller than 183.29?
Answer: By ≈ - 25.21%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).