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 = 6,820, v2 = 4,939.2.
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: - 15.
- Choose a random positive number for the end value: 16.
Formula and calculation:
(v1 - v2) / v1 =
(- 15 - 16) / - 15 =
-31 / - 15 ≈
2.066666666667 ≈
2.07
Although the absolute difference is negative: -31, the relative decrease change is positive: 2.07. 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:
(6,820 - 4,939.2)/|6,820| =
1,880.8/6,820 =
1,880.8 ÷ 6,820 =
1,880.8 ÷ 6,820 × 100/100 =
(1,880.8 × 100 ÷ 6,820)/100 =
(188,080 ÷ 6,820)/100 ≈
27.577712609971/100 =
27.577712609971% ≈
27.58%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 6,820 to the final, end value 4,939.2:
Rounded off to max. 12 decimal places ≈ 27.577712609971%
Rounded off to max. 2 decimal places ≈ 27.58%
The absolute (actual) difference
6,820 - 4,939.2 = 1,880.8
By what percentage has 6,820 decreased?
Answer: By ≈ 27.58%
By what percentage is 4,939.2 smaller than 6,820?
Answer: By ≈ 27.58%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).