1. What is Relative Change?

Relative change measures the change in a quantity relative to its initial value. It provides a standardized way to compare changes across different scales and is commonly used in economics, finance, and scientific measurements.

2. How Does the Calculator Work?

The calculator uses the relative change formula:

Where:

• \( f(a) \) — Initial value
• \( f(b) \) — Final value

Explanation: The formula calculates how much a quantity has changed in proportion to its original value.

3. Applications of Relative Change

Details: Relative change is used in financial analysis (stock returns), economics (GDP growth), scientific measurements (experimental results), and many other fields where proportional changes are more meaningful than absolute changes.

4. Using the Calculator

Tips: Enter the initial and final values. The calculator will compute both the decimal relative change and the percentage change. Initial value cannot be zero.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between relative and absolute change?
A: Absolute change is simply (final - initial), while relative change divides this by the initial value to show proportional change.

Q2: When should I use relative change?
A: Use relative change when comparing changes across different scales or when proportional change is more meaningful than absolute difference.

Q3: Can relative change be negative?
A: Yes, negative relative change indicates a decrease from the initial value.

Q4: What does a relative change of 0.5 mean?
A: It means a 50% increase from the initial value (0.5 = 50% when converted to percentage).

Q5: How is this related to percentage change?
A: Percentage change is simply relative change multiplied by 100.