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 = 2,589, v2 = 2,436.6.
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: - 17.
- Choose a random positive number for the end value: 18.
Formula and calculation:
(v1 - v2) / v1 =
(- 17 - 18) / - 17 =
-35 / - 17 ≈
2.058823529412 ≈
2.06
Although the absolute difference is negative: -35, the relative decrease change is positive: 2.06. 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:
(2,589 - 2,436.6)/|2,589| =
152.4/2,589 =
152.4 ÷ 2,589 =
152.4 ÷ 2,589 × 100/100 =
(152.4 × 100 ÷ 2,589)/100 =
(15,240 ÷ 2,589)/100 ≈
5.886442641947/100 =
5.886442641947% ≈
5.89%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 2,589 to the final, end value 2,436.6:
Rounded off to max. 12 decimal places ≈ 5.886442641947%
Rounded off to max. 2 decimal places ≈ 5.89%
The absolute (actual) difference
2,589 - 2,436.6 = 152.4
By what percentage has 2,589 decreased?
Answer: By ≈ 5.89%
By what percentage is 2,436.6 smaller than 2,589?
Answer: By ≈ 5.89%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).