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 = 2,530, v2 = 3,812.
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: - 2.
- Choose a random positive number for the end value: 53.
Formula and calculation:
(v1 - v2) / v1 =
(- 2 - 53) / - 2 =
-55 / - 2 =
27.5
Although the absolute difference is negative: -55, the relative decrease change is positive: 27.5. 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:
(2,530 - 3,812)/|2,530| =
- 1,282/2,530 =
- 1,282 ÷ 2,530 =
- 1,282 ÷ 2,530 × 100/100 =
(- 1,282 × 100 ÷ 2,530)/100 =
(- 128,200 ÷ 2,530)/100 ≈
- 50.671936758893/100 =
- 50.671936758893% ≈
- 50.67%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 2,530 to the final, end value 3,812:
Rounded off to max. 12 decimal places ≈ - 50.671936758893%
Rounded off to max. 2 decimal places ≈ - 50.67%
The absolute (actual) difference
2,530 - 3,812 = - 1,282
By what percentage has 2,530 decreased?
Answer: By ≈ - 50.67%
By what percentage is 3,812 smaller than 2,530?
Answer: By ≈ - 50.67%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).