Calculating Percents: A/B vs. B/A

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Discussion Overview

The discussion revolves around calculating percentages in different scenarios where two numbers, A and B, are compared. Participants explore the implications of using A/B versus B/A for percent calculations and seek a unified method to express the difference between the two values consistently, regardless of their order. The conversation touches on concepts of percent difference, percentage change, and the significance of reference values in calculations.

Discussion Character

  • Exploratory
  • Technical explanation
  • Debate/contested
  • Mathematical reasoning

Main Points Raised

  • One participant suggests that in a perfect world, the larger number should be in the denominator for clarity in percent calculations.
  • Another participant points out that the percent difference formula is appropriate for comparing two values and provides an example calculation.
  • A different viewpoint emphasizes the importance of the base value in percent calculations, arguing that the interpretation of increases and decreases depends on which number is used as the reference.
  • Some participants discuss the context of financial calculations, noting that the direction of change (gain or loss) can affect the meaning of the percentage.
  • One participant shares a derived formula that attempts to reconcile the two scenarios but ultimately expresses a preference for the simpler percent calculation using min and max values.

Areas of Agreement / Disagreement

Participants express differing views on the best approach to calculating and interpreting percentages. While some agree on the utility of the percent difference formula, others highlight the contextual factors that influence which calculation is appropriate. The discussion remains unresolved regarding a single calculation that satisfies all scenarios.

Contextual Notes

Participants note that the choice of reference value significantly impacts the interpretation of percentage calculations. There is also mention of the limitations of certain formulas depending on the context of the numbers being compared.

Who May Find This Useful

This discussion may be useful for individuals interested in mathematical reasoning, particularly in the context of percentage calculations, as well as those exploring the implications of different methods in financial or comparative analyses.

1plus1is10
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In a perfect world, whenever I need to calculate a percent, the biggest number would be on the bottom.
A=3, B=4
A/B = 3/4 = 0.75 * 100 = 75%
Wonderful - I can easily know I am 25% away from 100%.

Unfortunately, I often have the numbers swapped (A is bigger than B):
A=4, B=3
A/B = 4/3 = 1.333333 * 100 = 133%
Not wonderful - it is now 33% away from 100%

Is it possible to do one calculation to give me 25% in both scenarios?

I've toyed with many "stupid" ideas like:
abs(A-B) / ((A+B)/2)

I would even be happy to have something log/exp based rather than percent.
As long as the result could be used to compare A and B, and then also C and D, etc.

Thanks for any help and ideas.
 
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Its not to clear what you are trying to do. The idea you called stupid is the percent difference formula, which is what you want to use for getting the percent difference. so the percent difference of 3 and 4 is ~28.6%.

Or do you mean in general talking where people say something like 'we have a 50% improvement in sales'. In that case you just need to know the previous value to work it out. In the example you gave, like both statements are correct. 3 is 75% of 4, and 4 is 133% of 3. In this sales analogy people would say (3->4) 'Our sales increased 33% this month'. For 4->3 they would say 'our sales dropped 25% this month
 
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1plus1is10 said:
In a perfect world, whenever I need to calculate a percent, the biggest number would be on the bottom.
A=3, B=4
A/B = 3/4 = 0.75 * 100 = 75%
Wonderful - I can easily know I am 25% away from 100%.

Unfortunately, I often have the numbers swapped (A is bigger than B):
A=4, B=3
A/B = 4/3 = 1.333333 * 100 = 133%
Not wonderful - it is now 33% away from 100%
I wouldn't say "away from" as you lose information about whether there was an increase or a decrease. It would be better to say that 4 is a 33 1/3% increase from 3, or that 3 is a 25% decrease from 4.

The difference here is that the base that you compare to is different in each case: 4 divided by 3 in the first case, and 3 divided by 4 in the second case.
1plus1is10 said:
Is it possible to do one calculation to give me 25% in both scenarios?
No, because the base will be different in the two scenarios.
At least if I understand what you are asking.
1plus1is10 said:
I've toyed with many "stupid" ideas like:
abs(A-B) / ((A+B)/2)

I would even be happy to have something log/exp based rather than percent.
As long as the result could be used to compare A and B, and then also C and D, etc.

Thanks for any help and ideas.
 
SaskatoonGuy said:
The idea you called stupid is the percent difference formula, which is what you want to use for getting the percent difference.
Okay, so - I thought I invented it.
Thanks to you, I have a name and was able to Google it: "percent difference formula"

How about that - MathIsFun explained it to me:
https://www.mathsisfun.com/percentage-difference.html

To Quote Them:
Because there is no obvious way of choosing which value is the "reference" value...
it is best to choose a value halfway between so there is no confusion.

Thank you very much, SaskatoonGuy
 
Also... Thanks Mark44 for your explanation and efforts.
 
1plus1is10 said:
To Quote Them:
Because there is no obvious way of choosing which value is the "reference" value...
it is best to choose a value halfway between so there is no confusion.
It depends on the origin of the numbers.
If you invested $1000 and got $1100 in return, you gained 10%. The reverse direction is not really meaningful.
 
mfb said:
It depends on the origin of the numbers.
If you invested $1000 and got $1100 in return, you gained 10%. The reverse direction is not really meaningful.
The two directions are meaningful in the sense of Future Value and Present Value of investments.
 
The MathIsFun page explains "When Should I Use It?" = "when both values mean the same kind of thing - i.e. heights of two people"
"when there is an old value and a new value, you should use Percentage Change" (which is what you all are pointing out).

As to my original question:
"Is it possible to do one calculation to give me 25% in both scenarios?"

Well, after playing with the Percent Difference formula, I found a trick.
(although I break it up into separate calculations for clarity)

Pct = min(A,B)/max(A,B) * 100;
Diff = abs(A-B) / ((A+B)/2);
Near = atan( atan(Diff) ); <--trick--<<<
Diff = 100 - (Diff*100);
Near = 100 - (Near*100);

Pct = Diff = Near
100 = 100 = 100
95 = 95 = 95
90 = 89 = 90
85 = 84 = 84
80 = 78 = 78
75 = 71 = 73
70 = 65 = 67
65 = 58 = 62
60 = 50 = 57
55 = 42 = 52
50 = 33 = 47
45 = 24 = 42
40 = 14 = 38
35 = 4 = 35
30 = -8 = 31
25 = -20 = 28
20 = -33 = 25
15 = -48 = 23
10 = -64 = 20
5 = -81 = 18
0 = -100 = 16

In the end, I think I will K.I.S.S. and keep using:
Pct = min(A,B)/max(A,B) * 100;

I would need to write too big of a comment to explain this to myself later:
Hack = atan( atan( abs(A-B) / ((A+B)/2) ));
 

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