The equation (KE1-KE2)/KE2 = M/(M+m) relates to the conservation of energy and momentum during collisions, specifically addressing the theoretical fractional energy loss in inelastic collisions. The variables M and m represent the masses of two colliding objects within a system, where KE_i is the initial kinetic energy and KE_f is the final kinetic energy. The discussion emphasizes that when velocities are much less than the speed of light, kinetic energy can be calculated using the classical formula KE = 1/2 mv^2, while relativistic effects must be considered at higher speeds. The inquiry seeks clarification on the equation's derivation and its applications, particularly in mechanics rather than molecular kinetic theory. Understanding this equation is crucial for analyzing energy transformations in collision scenarios.