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 = 0.0063, v2 = 9.7.
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: - 85.
- Choose a random positive number for the end value: 28.
Formula and calculation:
(v1 - v2) / v1 =
(- 85 - 28) / - 85 =
-113 / - 85 ≈
1.329411764706 ≈
1.33
Although the absolute difference is negative: -113, the relative decrease change is positive: 1.33. 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:
(0.0063 - 9.7)/|0.0063| =
- 9.6937/0.0063 =
- 9.6937 ÷ 0.0063 =
- 9.6937 ÷ 0.0063 × 100/100 =
(- 9.6937 × 100 ÷ 0.0063)/100 =
(- 969.37 ÷ 0.0063)/100 ≈
- 153,868.253968253968/100 =
- 153,868.253968253968% ≈
- 153,868.25%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 0.0063 to the final, end value 9.7:
Rounded off to max. 12 decimal places ≈ - 153,868.253968253968%
Rounded off to max. 2 decimal places ≈ - 153,868.25%
The absolute (actual) difference
0.0063 - 9.7 = - 9.6937 ≈ - 9.69
By what percentage has 0.0063 decreased?
Answer: By ≈ - 153,868.25%
By what percentage is 9.7 smaller than 0.0063?
Answer: By ≈ - 153,868.25%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).