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 = 4,848, v2 = 6,132.5.
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: - 14.
- Choose a random positive number for the end value: 56.
Formula and calculation:
(v1 - v2) / v1 =
(- 14 - 56) / - 14 =
-70 / - 14 =
5
Although the absolute difference is negative: -70, the relative decrease change is positive: 5. 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:
(4,848 - 6,132.5)/|4,848| =
- 1,284.5/4,848 =
- 1,284.5 ÷ 4,848 =
- 1,284.5 ÷ 4,848 × 100/100 =
(- 1,284.5 × 100 ÷ 4,848)/100 =
(- 128,450 ÷ 4,848)/100 ≈
- 26.495462046205/100 =
- 26.495462046205% ≈
- 26.5%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 4,848 to the final, end value 6,132.5:
Rounded off to max. 12 decimal places ≈ - 26.495462046205%
Rounded off to max. 2 decimal places ≈ - 26.5%
The absolute (actual) difference
4,848 - 6,132.5 = - 1,284.5
By what percentage has 4,848 decreased?
Answer: By ≈ - 26.5%
By what percentage is 6,132.5 smaller than 4,848?
Answer: By ≈ - 26.5%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).