Uses and Abuses of Percentages

 

Percent means per cent, per 100:  34 % = 34 / 100

 

·        Review: express as a fraction, decimal and as a percentage:

1/8, 0.45, 0.3333, 23%, 110%

 

·        Ratios:        find the ratio of A to B, B to A,  A is …. Percent of B:

A = 150,          B = 25.

A = 75,            B = 480.

 

·        Express first as percentage of second:  25 women in a room of 113 people.

 

Change: (one thing changes)

Absolute change = new value – reference value

Relative change = (new value – reference value)/ reference value

 

·        Consumer debt in the US increased from $160 billion in 1974 to $850 billion in 1995.

Find the absolute and relative change.

 

Difference: (2 things differ)

Absolute difference = compared value – reference value

Relative difference = (compared value – reference value)/ reference value

·        In 1996, Saudi Arabia produced 8.2 million barrels of crude per day

        The US produced 6.4 million barrels of crude per day

Absolute difference?

Relative difference computed 2 ways, with US as reference value, with Saudi Arabia as reference value?

 

Of versus more than

If the compared value is  P% more than the reference value, it is (100 + P)% of the reference value.

Similarly for less than.

·        If Jack weighs 40% more than Jill, his weight is …% of Jill’s weight.

·        The wholesale cost of a car is 40% less than its retail cost. Therefore the retail cost is … times the wholesale cost.

 

Percentage Points versus %

            “percentage points”: absolute change or difference.

            “%” or “percent”: relative change or difference.

·        The percentage of  highschool seniors using alcohol decreased 68.2% in 1975 to 52.7% in 1997.

Express the change in 2 ways: absolute difference in terms of percentage points.

                                          Relative difference in terms of  %.

 

Solving Percentage Problems:

            If the compared value is P% more than the reference value:

                        Compared value = (100 + P)% * reference value

 

·        Bagel sales have reached  $3 billion and are growing 20% annually according to Lehman Brothers. At this growth rate, how much will be spent on bagels next year?

Compared value = (100 +20)% * 3 billion

 

Shifting reference values

·        Your property taxes increase 5% one year and 6% next year. The total tax increase is 11%. True or False, explain.

Beware of shifting reference values!

 

Sensible?

·        The price of cellular service has decreased 150% in the last 10 years.

·        Real estate prices have increased 450% in the last 10 years.

 

Average percentages

·        A class with 25 students had an 86% average on the midterm.

A class with 70 students had an 80% average on the midterm.

Total average is 85%?

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