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 = 642,268, v2 = 352.5.
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: - 86.
- Choose a random positive number for the end value: 52.
Formula and calculation:
(v1 - v2) / v1 =
(- 86 - 52) / - 86 =
-138 / - 86 ≈
1.604651162791 ≈
1.6
Although the absolute difference is negative: -138, the relative decrease change is positive: 1.6. 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:
(642,268 - 352.5)/|642,268| =
641,915.5/642,268 =
641,915.5 ÷ 642,268 =
641,915.5 ÷ 642,268 × 100/100 =
(641,915.5 × 100 ÷ 642,268)/100 =
(64,191,550 ÷ 642,268)/100 ≈
99.945116368868/100 =
99.945116368868% ≈
99.95%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 642,268 to the final, end value 352.5:
Rounded off to max. 12 decimal places ≈ 99.945116368868%
Rounded off to max. 2 decimal places ≈ 99.95%
The absolute (actual) difference
642,268 - 352.5 = 641,915.5
By what percentage has 642,268 decreased?
Answer: By ≈ 99.95%
By what percentage is 352.5 smaller than 642,268?
Answer: By ≈ 99.95%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).