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 = 44.3.
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: - 88.
- Choose a random positive number for the end value: 47.
Formula and calculation:
(v1 - v2) / v1 =
(- 88 - 47) / - 88 =
-135 / - 88 ≈
1.534090909091 ≈
1.53
Although the absolute difference is negative: -135, the relative decrease change is positive: 1.53. 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 - 44.3)/|48.5| =
4.2/48.5 =
4.2 ÷ 48.5 =
4.2 ÷ 48.5 × 100/100 =
(4.2 × 100 ÷ 48.5)/100 =
(420 ÷ 48.5)/100 ≈
8.659793814433/100 =
8.659793814433% ≈
8.66%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 48.5 to the final, end value 44.3:
Rounded off to max. 12 decimal places ≈ 8.659793814433%
Rounded off to max. 2 decimal places ≈ 8.66%
The absolute (actual) difference
48.5 - 44.3 = 4.2
By what percentage has 48.5 decreased?
Answer: By ≈ 8.66%
By what percentage is 44.3 smaller than 48.5?
Answer: By ≈ 8.66%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).