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 = 606, v2 = 540.1.
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: - 54.
- Choose a random positive number for the end value: 40.
Formula and calculation:
(v1 - v2) / v1 =
(- 54 - 40) / - 54 =
-94 / - 54 ≈
1.740740740741 ≈
1.74
Although the absolute difference is negative: -94, the relative decrease change is positive: 1.74. 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:
(606 - 540.1)/|606| =
65.9/606 =
65.9 ÷ 606 =
65.9 ÷ 606 × 100/100 =
(65.9 × 100 ÷ 606)/100 =
(6,590 ÷ 606)/100 ≈
10.874587458746/100 =
10.874587458746% ≈
10.87%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 606 to the final, end value 540.1:
Rounded off to max. 12 decimal places ≈ 10.874587458746%
Rounded off to max. 2 decimal places ≈ 10.87%
The absolute (actual) difference
606 - 540.1 = 65.9
By what percentage has 606 decreased?
Answer: By ≈ 10.87%
By what percentage is 540.1 smaller than 606?
Answer: By ≈ 10.87%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).