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 = 2,280, v2 = 2,307.
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: - 44.
- Choose a random positive number for the end value: 99.
Formula and calculation:
(v1 - v2) / v1 =
(- 44 - 99) / - 44 =
-143 / - 44 =
3.25
Although the absolute difference is negative: -143, the relative decrease change is positive: 3.25. 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:
(2,280 - 2,307)/|2,280| =
- 27/2,280 =
- 27 ÷ 2,280 =
- 27 ÷ 2,280 × 100/100 =
(- 27 × 100 ÷ 2,280)/100 =
(- 2,700 ÷ 2,280)/100 ≈
- 1.184210526316/100 =
- 1.184210526316% ≈
- 1.18%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 2,280 to the final, end value 2,307:
Rounded off to max. 12 decimal places ≈ - 1.184210526316%
Rounded off to max. 2 decimal places ≈ - 1.18%
The absolute (actual) difference
2,280 - 2,307 = - 27
By what percentage has 2,280 decreased?
Answer: By ≈ - 1.18%
By what percentage is 2,307 smaller than 2,280?
Answer: By ≈ - 1.18%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).