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 = 15,050, v2 = 5,686.5.
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: - 86.
- Choose a random positive number for the end value: 4.
Formula and calculation:
(v1 - v2) / v1 =
(- 86 - 4) / - 86 =
-90 / - 86 ≈
1.046511627907 ≈
1.05
Although the absolute difference is negative: -90, the relative decrease change is positive: 1.05. 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:
(15,050 - 5,686.5)/|15,050| =
9,363.5/15,050 =
9,363.5 ÷ 15,050 =
9,363.5 ÷ 15,050 × 100/100 =
(9,363.5 × 100 ÷ 15,050)/100 =
(936,350 ÷ 15,050)/100 ≈
62.215946843854/100 =
62.215946843854% ≈
62.22%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 15,050 to the final, end value 5,686.5:
Rounded off to max. 12 decimal places ≈ 62.215946843854%
Rounded off to max. 2 decimal places ≈ 62.22%
The absolute (actual) difference
15,050 - 5,686.5 = 9,363.5
By what percentage has 15,050 decreased?
Answer: By ≈ 62.22%
By what percentage is 5,686.5 smaller than 15,050?
Answer: By ≈ 62.22%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).