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 = 951,094.46, v2 = 379,111.8.
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: 34.
Formula and calculation:
(v1 - v2) / v1 =
(- 8 - 34) / - 8 =
-42 / - 8 =
5.25
Although the absolute difference is negative: -42, the relative decrease change is positive: 5.25. 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:
(951,094.46 - 379,111.8)/|951,094.46| =
571,982.66/951,094.46 =
571,982.66 ÷ 951,094.46 =
571,982.66 ÷ 951,094.46 × 100/100 =
(571,982.66 × 100 ÷ 951,094.46)/100 =
(57,198,266 ÷ 951,094.46)/100 =
60.139416646376/100 =
60.139416646376% ≈
60.14%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 951,094.46 to the final, end value 379,111.8:
Not rounded = 60.139416646376%
Rounded off to max. 2 decimal places ≈ 60.14%
The absolute (actual) difference
951,094.46 - 379,111.8 = 571,982.66
By what percentage has 951,094.46 decreased?
Answer: By ≈ 60.14%
By what percentage is 379,111.8 smaller than 951,094.46?
Answer: By ≈ 60.14%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).