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 = 7.13, v2 = 8.77.
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: - 24.
- Choose a random positive number for the end value: 61.
Formula and calculation:
(v1 - v2) / v1 =
(- 24 - 61) / - 24 =
-85 / - 24 ≈
3.541666666667 ≈
3.54
Although the absolute difference is negative: -85, the relative decrease change is positive: 3.54. 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:
(7.13 - 8.77)/|7.13| =
- 1.64/7.13 =
- 1.64 ÷ 7.13 =
- 1.64 ÷ 7.13 × 100/100 =
(- 1.64 × 100 ÷ 7.13)/100 =
(- 164 ÷ 7.13)/100 ≈
- 23.001402524544/100 =
- 23.001402524544% ≈
- 23%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 7.13 to the final, end value 8.77:
Rounded off to max. 12 decimal places ≈ - 23.001402524544%
Rounded off to max. 2 decimal places ≈ - 23%
The absolute (actual) difference
7.13 - 8.77 = - 1.64
By what percentage has 7.13 decreased?
Answer: By ≈ - 23%
By what percentage is 8.77 smaller than 7.13?
Answer: By ≈ - 23%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).