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 = 1,278,868, v2 = 462,884.
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: - 77.
- Choose a random positive number for the end value: 2.
Formula and calculation:
(v1 - v2) / v1 =
(- 77 - 2) / - 77 =
-79 / - 77 =
1.025974025974 ≈
1.03
Although the absolute difference is negative: -79, the relative decrease change is positive: 1.03. 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:
(1,278,868 - 462,884)/|1,278,868| =
815,984/1,278,868 =
815,984 ÷ 1,278,868 =
815,984 ÷ 1,278,868 × 100/100 =
(815,984 × 100 ÷ 1,278,868)/100 =
(81,598,400 ÷ 1,278,868)/100 =
63.805177704032/100 =
63.805177704032% ≈
63.81%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 1,278,868 to the final, end value 462,884:
Not rounded = 63.805177704032%
Rounded off to max. 2 decimal places ≈ 63.81%
The absolute (actual) difference
1,278,868 - 462,884 = 815,984
By what percentage has 1,278,868 decreased?
Answer: By ≈ 63.81%
By what percentage is 462,884 smaller than 1,278,868?
Answer: By ≈ 63.81%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).