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 = 114.68, v2 = 825.78.
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: - 2.
- Choose a random positive number for the end value: 2.
Formula and calculation:
(v1 - v2) / v1 =
(- 2 - 2) / - 2 =
-4 / - 2 =
2
Although the absolute difference is negative: -4, the relative decrease change is positive: 2. 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:
(114.68 - 825.78)/|114.68| =
- 711.1/114.68 =
- 711.1 ÷ 114.68 =
- 711.1 ÷ 114.68 × 100/100 =
(- 711.1 × 100 ÷ 114.68)/100 =
(- 71,110 ÷ 114.68)/100 ≈
- 620.073247296826/100 =
- 620.073247296826% ≈
- 620.07%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 114.68 to the final, end value 825.78:
Rounded off to max. 12 decimal places ≈ - 620.073247296826%
Rounded off to max. 2 decimal places ≈ - 620.07%
The absolute (actual) difference
114.68 - 825.78 = - 711.1
By what percentage has 114.68 decreased?
Answer: By ≈ - 620.07%
By what percentage is 825.78 smaller than 114.68?
Answer: By ≈ - 620.07%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).