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 = 5,093, v2 = 4,482.8.
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: - 81.
- Choose a random positive number for the end value: 36.
Formula and calculation:
(v1 - v2) / v1 =
(- 81 - 36) / - 81 =
-117 / - 81 ≈
1.444444444444 ≈
1.44
Although the absolute difference is negative: -117, the relative decrease change is positive: 1.44. 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:
(5,093 - 4,482.8)/|5,093| =
610.2/5,093 =
610.2 ÷ 5,093 =
610.2 ÷ 5,093 × 100/100 =
(610.2 × 100 ÷ 5,093)/100 =
(61,020 ÷ 5,093)/100 ≈
11.981150598861/100 =
11.981150598861% ≈
11.98%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 5,093 to the final, end value 4,482.8:
Rounded off to max. 12 decimal places ≈ 11.981150598861%
Rounded off to max. 2 decimal places ≈ 11.98%
The absolute (actual) difference
5,093 - 4,482.8 = 610.2
By what percentage has 5,093 decreased?
Answer: By ≈ 11.98%
By what percentage is 4,482.8 smaller than 5,093?
Answer: By ≈ 11.98%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).