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 = 520,647, v2 = 351,529.8.
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: - 8.
- Choose a random positive number for the end value: 37.
Formula and calculation:
(v1 - v2) / v1 =
(- 8 - 37) / - 8 =
-45 / - 8 =
5.625 ≈
5.63
Although the absolute difference is negative: -45, the relative decrease change is positive: 5.63. 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:
(520,647 - 351,529.8)/|520,647| =
169,117.2/520,647 =
169,117.2 ÷ 520,647 =
169,117.2 ÷ 520,647 × 100/100 =
(169,117.2 × 100 ÷ 520,647)/100 =
(16,911,720 ÷ 520,647)/100 ≈
32.482123204398/100 =
32.482123204398% ≈
32.48%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 520,647 to the final, end value 351,529.8:
Rounded off to max. 12 decimal places ≈ 32.482123204398%
Rounded off to max. 2 decimal places ≈ 32.48%
The absolute (actual) difference
520,647 - 351,529.8 = 169,117.2
By what percentage has 520,647 decreased?
Answer: By ≈ 32.48%
By what percentage is 351,529.8 smaller than 520,647?
Answer: By ≈ 32.48%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).