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 = 4,500, v2 = 5,011.8.
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: - 6.
- Choose a random positive number for the end value: 41.
Formula and calculation:
(v1 - v2) / v1 =
(- 6 - 41) / - 6 =
-47 / - 6 ≈
7.833333333333 ≈
7.83
Although the absolute difference is negative: -47, the relative decrease change is positive: 7.83. 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:
(4,500 - 5,011.8)/|4,500| =
- 511.8/4,500 =
- 511.8 ÷ 4,500 =
- 511.8 ÷ 4,500 × 100/100 =
(- 511.8 × 100 ÷ 4,500)/100 =
(- 51,180 ÷ 4,500)/100 ≈
- 11.373333333333/100 =
- 11.373333333333% ≈
- 11.37%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 4,500 to the final, end value 5,011.8:
Rounded off to max. 12 decimal places ≈ - 11.373333333333%
Rounded off to max. 2 decimal places ≈ - 11.37%
The absolute (actual) difference
4,500 - 5,011.8 = - 511.8
By what percentage has 4,500 decreased?
Answer: By ≈ - 11.37%
By what percentage is 5,011.8 smaller than 4,500?
Answer: By ≈ - 11.37%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).