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 = 187.43, v2 = 92.8.
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: 31.
Formula and calculation:
(v1 - v2) / v1 =
(- 24 - 31) / - 24 =
-55 / - 24 ≈
2.291666666667 ≈
2.29
Although the absolute difference is negative: -55, the relative decrease change is positive: 2.29. 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:
(187.43 - 92.8)/|187.43| =
94.63/187.43 =
94.63 ÷ 187.43 =
94.63 ÷ 187.43 × 100/100 =
(94.63 × 100 ÷ 187.43)/100 =
(9,463 ÷ 187.43)/100 ≈
50.488182254708/100 =
50.488182254708% ≈
50.49%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 187.43 to the final, end value 92.8:
Rounded off to max. 12 decimal places ≈ 50.488182254708%
Rounded off to max. 2 decimal places ≈ 50.49%
The absolute (actual) difference
187.43 - 92.8 = 94.63
By what percentage has 187.43 decreased?
Answer: By ≈ 50.49%
By what percentage is 92.8 smaller than 187.43?
Answer: By ≈ 50.49%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).