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 = 0.114, v2 = 3.4.
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: - 36.
- Choose a random positive number for the end value: 51.
Formula and calculation:
(v1 - v2) / v1 =
(- 36 - 51) / - 36 =
-87 / - 36 ≈
2.416666666667 ≈
2.42
Although the absolute difference is negative: -87, the relative decrease change is positive: 2.42. 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:
(0.114 - 3.4)/|0.114| =
- 3.286/0.114 =
- 3.286 ÷ 0.114 =
- 3.286 ÷ 0.114 × 100/100 =
(- 3.286 × 100 ÷ 0.114)/100 =
(- 328.6 ÷ 0.114)/100 ≈
- 2,882.456140350877/100 =
- 2,882.456140350877% ≈
- 2,882.46%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 0.114 to the final, end value 3.4:
Rounded off to max. 12 decimal places ≈ - 2,882.456140350877%
Rounded off to max. 2 decimal places ≈ - 2,882.46%
The absolute (actual) difference
0.114 - 3.4 = - 3.286 ≈ - 3.29
By what percentage has 0.114 decreased?
Answer: By ≈ - 2,882.46%
By what percentage is 3.4 smaller than 0.114?
Answer: By ≈ - 2,882.46%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).