How do i truncate a series to lie between 0 and 1?
 

Hey, I have two series. I want to get a ratio of their changes, but i want
the ratio to lie between 0 and 1. does anyone know how to do that?
someone suggested that i truncate or normalise. but i dont know how to.
please help.
Thanks

How do i truncate a series to lie between 0 and 1?
 

Not sure exactly what you want. "Ratio of change in series" - does this mean
the ratio of changes for each individual item or for the sum of all of them?
But in general the formula for a "change" as a rato (i.e. percentage where 1
is equal to 100%) is as follows:
(New Value - Old Value)/(Old Value)
But note that if the new value is more than twice the old value this may
give a ratio greater than 1, which is correct but would violate your
statement that you want it between zero and 1.
--
- K Dales


"Truncation or normalisation" wrote:

Hey, I have two series. I want to get a ratio of their changes, but i want
the ratio to lie between 0 and 1. does anyone know how to do that?
someone suggested that i truncate or normalise. but i dont know how to.
please help.
Thanks