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 = 4,132,775.12, v2 = 3,920,191.
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: - 31.
- Choose a random positive number for the end value: 15.
Formula and calculation:
(v1 - v2) / v1 =
(- 31 - 15) / - 31 =
-46 / - 31 ≈
1.483870967742 ≈
1.48
Although the absolute difference is negative: -46, the relative decrease change is positive: 1.48. 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:
(4,132,775.12 - 3,920,191)/|4,132,775.12| =
212,584.12/4,132,775.12 =
212,584.12 ÷ 4,132,775.12 =
212,584.12 ÷ 4,132,775.12 × 100/100 =
(212,584.12 × 100 ÷ 4,132,775.12)/100 =
(21,258,412 ÷ 4,132,775.12)/100 ≈
5.143858879987/100 =
5.143858879987% ≈
5.14%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 4,132,775.12 to the final, end value 3,920,191:
Rounded off to max. 12 decimal places ≈ 5.143858879987%
Rounded off to max. 2 decimal places ≈ 5.14%
The absolute (actual) difference
4,132,775.12 - 3,920,191 = 212,584.12
By what percentage has 4,132,775.12 decreased?
Answer: By ≈ 5.14%
By what percentage is 3,920,191 smaller than 4,132,775.12?
Answer: By ≈ 5.14%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).