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 = 6,274.4, v2 = 6,091.9.
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: - 64.
- Choose a random positive number for the end value: 2.
Formula and calculation:
(v1 - v2) / v1 =
(- 64 - 2) / - 64 =
-66 / - 64 =
1.03125 ≈
1.03
Although the absolute difference is negative: -66, 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:
(6,274.4 - 6,091.9)/|6,274.4| =
182.5/6,274.4 =
182.5 ÷ 6,274.4 =
182.5 ÷ 6,274.4 × 100/100 =
(182.5 × 100 ÷ 6,274.4)/100 =
(18,250 ÷ 6,274.4)/100 ≈
2.908644651281/100 =
2.908644651281% ≈
2.91%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 6,274.4 to the final, end value 6,091.9:
Rounded off to max. 12 decimal places ≈ 2.908644651281%
Rounded off to max. 2 decimal places ≈ 2.91%
The absolute (actual) difference
6,274.4 - 6,091.9 = 182.5
By what percentage has 6,274.4 decreased?
Answer: By ≈ 2.91%
By what percentage is 6,091.9 smaller than 6,274.4?
Answer: By ≈ 2.91%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).