The procedure for determining the percentage change between two values involves several steps. First, find the difference between the new value and the original value. Then, divide this difference by the original value. Finally, multiply the result by 100 to express the change as a percentage. For example, if a value increases from 50 to 60, the difference is 10. Dividing 10 by the original value of 50 yields 0.2. Multiplying 0.2 by 100 shows a percentage increase of 20%. This formula is adaptable to decreases as well, resulting in a negative percentage change.
Understanding the degree of change, expressed proportionally, provides critical insights in various fields. In finance, it allows for tracking investment performance and identifying trends in market fluctuations. In sales, it aids in evaluating the effectiveness of marketing campaigns and predicting future revenue. Furthermore, its consistent application facilitates comparisons of data sets across different time periods or categories. The concept has been utilized throughout history, becoming a cornerstone of statistical analysis and informed decision-making.