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 = 27.192, v2 = 25.177.
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: - 40.
- Choose a random positive number for the end value: 27.
Formula and calculation:
(v1 - v2) / v1 =
(- 40 - 27) / - 40 =
-67 / - 40 =
1.675 ≈
1.68
Although the absolute difference is negative: -67, the relative decrease change is positive: 1.68. 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:
(27.192 - 25.177)/|27.192| =
2.015/27.192 =
2.015 ÷ 27.192 =
2.015 ÷ 27.192 × 100/100 =
(2.015 × 100 ÷ 27.192)/100 =
(201.5 ÷ 27.192)/100 ≈
7.410267725802/100 =
7.410267725802% ≈
7.41%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 27.192 to the final, end value 25.177:
Rounded off to max. 12 decimal places ≈ 7.410267725802%
Rounded off to max. 2 decimal places ≈ 7.41%
The absolute (actual) difference
27.192 - 25.177 = 2.015 ≈ 2.02
By what percentage has 27.192 decreased?
Answer: By ≈ 7.41%
By what percentage is 25.177 smaller than 27.192?
Answer: By ≈ 7.41%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).