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, v2 = 322.3.
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: - 18.
- Choose a random positive number for the end value: 73.
Formula and calculation:
(v1 - v2) / v1 =
(- 18 - 73) / - 18 =
-91 / - 18 ≈
5.055555555556 ≈
5.06
Although the absolute difference is negative: -91, the relative decrease change is positive: 5.06. 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 - 322.3)/|- 2| =
- 324.3/2 =
- 324.3 ÷ 2 =
- 324.3 ÷ 2 × 100/100 =
(- 324.3 × 100 ÷ 2)/100 =
(- 32,430 ÷ 2)/100 =
- 16,215/100 =
- 16,215%
The relative percent decrease change
from the original, initial value - 2 to the final, end value 322.3:
= - 16,215%
The absolute (actual) difference
- 2 - (322.3) = - 2 - 322.3 = - 324.3
By what percentage has - 2 decreased?
Answer: By - 16,215%
By what percentage is 322.3 smaller than - 2?
Answer: By - 16,215%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).