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 = 51.2, v2 = 7.1.
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: - 26.
- Choose a random positive number for the end value: 39.
Formula and calculation:
(v1 - v2) / v1 =
(- 26 - 39) / - 26 =
-65 / - 26 =
2.5
Although the absolute difference is negative: -65, the relative decrease change is positive: 2.5. 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:
(51.2 - 7.1)/|51.2| =
44.1/51.2 =
44.1 ÷ 51.2 =
44.1 ÷ 51.2 × 100/100 =
(44.1 × 100 ÷ 51.2)/100 =
(4,410 ÷ 51.2)/100 =
86.1328125/100 =
86.1328125% ≈
86.13%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 51.2 to the final, end value 7.1:
Not rounded = 86.1328125%
Rounded off to max. 2 decimal places ≈ 86.13%
The absolute (actual) difference
51.2 - 7.1 = 44.1
By what percentage has 51.2 decreased?
Answer: By ≈ 86.13%
By what percentage is 7.1 smaller than 51.2?
Answer: By ≈ 86.13%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).