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.
Namely:
v1 - is called the reference value (original, initial number);
v2 - is called the new value (the end value).
In our case: v1 = 387, v2 = 359.
The relative decrease (change). Formula:
(v1 - v2) / |v1| =
The actual change / |v1|
Legend:
v1 - the original number
|v1| - the positive value of v1, |v1| >= 0
v2 - the new value
The actual change = v1 - v2
/ - the fraction bar (division)
The actual change / |v1| = The actual change ÷ |v1|
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: - 75.
Choose a random positive number for the end value: 1.
Formula and calculation:
(v1 - v2) / v1 =
(- 75 - 1) / - 75 =
-76 / - 75 ≈
1.013333333333 ≈
1.01
Although the absolute change is negative: -76,
... the relative change is positive: 1.01.
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):
(387 - 359)/|387| =
28/387 =
28 ÷ 387 =
28 ÷ 387 × 100/100 =
(28 × 100 ÷ 387)/100 =
(2,800 ÷ 387)/100 =
7.235142118863/100 =
7.235142118863% ≈
7.24%
(Rounded off to max. 2 decimal places)
The relative percent decrease (change)...
from the initial value 387 to the final value 359:
Not rounded = 7.235142118863%
Rounded off to max. 2 decimal places ≈ 7.24%
The actual change
387 - 359 = 28
The relative percent decrease (change) is positive...
so we really have a relative percent decrease.