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 = 48.5, v2 = 42.6.
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: - 94.
- Choose a random positive number for the end value: 67.
Formula and calculation:
(v1 - v2) / v1 =
(- 94 - 67) / - 94 =
-161 / - 94 ≈
1.712765957447 ≈
1.71
Although the absolute difference is negative: -161, the relative decrease change is positive: 1.71. 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:
(48.5 - 42.6)/|48.5| =
5.9/48.5 =
5.9 ÷ 48.5 =
5.9 ÷ 48.5 × 100/100 =
(5.9 × 100 ÷ 48.5)/100 =
(590 ÷ 48.5)/100 ≈
12.164948453608/100 =
12.164948453608% ≈
12.16%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 48.5 to the final, end value 42.6:
Rounded off to max. 12 decimal places ≈ 12.164948453608%
Rounded off to max. 2 decimal places ≈ 12.16%
The absolute (actual) difference
48.5 - 42.6 = 5.9
By what percentage has 48.5 decreased?
Answer: By ≈ 12.16%
By what percentage is 42.6 smaller than 48.5?
Answer: By ≈ 12.16%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).