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Index vs %
What's the difference between an index and percentage growth/decline?
Example: Last year's volume was 158 vs 2006's volume of 97. If I divide 158 / 97 I get 162.9. Isn't that the same as 62.9%? Why would I use one over the other and if I decide I don't want it to read 162.9, just 62.9, how do I get that to happen? Thanks. |
#2
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Index vs %
-1 or -100%
-- David Biddulph wrote in message ... What's the difference between an index and percentage growth/decline? Example: Last year's volume was 158 vs 2006's volume of 97. If I divide 158 / 97 I get 162.9. Isn't that the same as 62.9%? Why would I use one over the other and if I decide I don't want it to read 162.9, just 62.9, how do I get that to happen? Thanks. |
#3
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Index vs %
On Mar 15, 7:00*am, " wrote:
What's the difference between an index and percentage growth/decline? It is largely semantics. But it affects how you use each number in formulas Example: Last year's volume was 158 vs 2006's volume of 97. If I divide 158 / 97 I get 162.9. No, you get 1.629 (rounded). Apparently, you chose to multiply by 100 to get your index. That is an arbitrary choice, albeit a common one. Isn't that the same as 62.9%? Well, 62.9% is derived from that. Specifically, 158/97 - 1, formatted as Percentage. Why would I use one over the other Percentage growth can be negative as well as positive; some people have trouble dealing with that. For example, if the 2007 volume had been 36, you would have a "growth" of -62.9% (rounded). Of course, we say "loss", not "growth". When growth goes from 63% to 126%, it doubled; similarly when loss goes from -63% to -126%. But what if the loss goes from -63% to 63%? (Rhetorical.) In contrast, an index is never negative, at least when we are talking about volume and other counting numbers that cannot themselves be negative. and if I decide I don't want it to read 162.9, just 62.9, how do I get that to happen? Just as the index was computed by 100*(158/97), you could compute the "percentage" by 100*(158/97 - 1). But I prefer to use 158/97 - 1, and format it as percentage. Otherwise, you always have to remember to divide the "percentage" figure by 100 when you use it aritmetic formulas. |
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