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 = 2,905, v2 = 2,494.3.
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: - 41.
- Choose a random positive number for the end value: 63.
Formula and calculation:
(v1 - v2) / v1 =
(- 41 - 63) / - 41 =
-104 / - 41 ≈
2.536585365854 ≈
2.54
Although the absolute difference is negative: -104, the relative decrease change is positive: 2.54. 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:
(2,905 - 2,494.3)/|2,905| =
410.7/2,905 =
410.7 ÷ 2,905 =
410.7 ÷ 2,905 × 100/100 =
(410.7 × 100 ÷ 2,905)/100 =
(41,070 ÷ 2,905)/100 ≈
14.13769363167/100 =
14.13769363167% ≈
14.14%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 2,905 to the final, end value 2,494.3:
Rounded off to max. 12 decimal places ≈ 14.13769363167%
Rounded off to max. 2 decimal places ≈ 14.14%
The absolute (actual) difference
2,905 - 2,494.3 = 410.7
By what percentage has 2,905 decreased?
Answer: By ≈ 14.14%
By what percentage is 2,494.3 smaller than 2,905?
Answer: By ≈ 14.14%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).