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 = 872, v2 = 339.7.
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: - 24.
- Choose a random positive number for the end value: 19.
Formula and calculation:
(v1 - v2) / v1 =
(- 24 - 19) / - 24 =
-43 / - 24 ≈
1.791666666667 ≈
1.79
Although the absolute difference is negative: -43, the relative decrease change is positive: 1.79. 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:
(872 - 339.7)/|872| =
532.3/872 =
532.3 ÷ 872 =
532.3 ÷ 872 × 100/100 =
(532.3 × 100 ÷ 872)/100 =
(53,230 ÷ 872)/100 ≈
61.043577981651/100 =
61.043577981651% ≈
61.04%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 872 to the final, end value 339.7:
Rounded off to max. 12 decimal places ≈ 61.043577981651%
Rounded off to max. 2 decimal places ≈ 61.04%
The absolute (actual) difference
872 - 339.7 = 532.3
By what percentage has 872 decreased?
Answer: By ≈ 61.04%
By what percentage is 339.7 smaller than 872?
Answer: By ≈ 61.04%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).