hey you guys welcome to another video in this video i want to discuss absolute difference versus relative difference so let's get going okay so on your screen you see the two formulas for both absolute difference and relative difference okay so absolute difference is going to be some compared value minus some reference value and then the relative difference is simply going to be the absolute difference divided by the reference value times 100 percent so in other words the relative difference is going to take the compare value subtract the reference value divide by the reference value and then change that decimal to a percentage so that we can interpret in terms of a percentage alright so sometimes it's hard to understand formulas without seeing them in a proper context so let's slide to the left and look at a problem okay so this problem reads clint's salary increased from 23 000 dollars to 36 800 over some three year span over that same span of time over that same three period three year period helen's salary increased from twenty nine thousand to forty four thousand nine hundred fifty dollars questions are whose salary increased more in absolute terms so whose salary increased more in terms of their beginning value versus their ending value and then the second question is whose salary increased more in relative terms okay so that's gonna that's asking something a little different so let's dissect each of these two problems and answer them appropriately okay so what we need to do first is make sure we look at each of these two people individually because yes we are comparing their pay raises to each other so the first thing we need to do is find the absolute difference for each one of their pay raises individually okay so let's first look at clint clint's salary at the beginning of this three year span was at 23 000 at the end of the three year span it had risen all the way up to 36 800 so the first thing i want to know is how much of a pay raise did he get in absolute terms so in other words in a money value how much money over that three year span did he accumulate in raises we're going to call that the absolute difference okay so the app his absolute difference is his compared value minus his reference value now we want to know how much he has gained in pay raises so his compared value is going to be his new value his 36 800 and we are comparing that to his salary at the beginning of this three year span which is 23 000. so i have compared value minus reference value i'm using his twenty three thousand dollar beginning salary as a reference to figure out how much money he has gained in pay raises over three years and if you do that calculation you should get thirteen thousand eight hundred dollars so this represents how much money he has gained over three years in total for pay raises okay that's his absolute difference let's find his relative difference all right if you think about what the formula was his relative difference is the absolute difference divided by the reference value times 100 percent and all that times 100 percent does is it changes a decimal to a percentage so that we can interpret it in terms of a percentage so his absolute difference was that thirteen thousand eight hundred dollars and we're using twenty three thousand as a reference value so whenever i interpret this that 23 000 is going to be very important so if you calculate this out you'll get 60 percent so he's gotten 60 of his original pay in the at the beginning of this three-year span he has gained 60 percent of that in pay raises so 60 of twenty three thousand is thirteen thousand eight hundred that indicates his amount in absolute terms of the money he has gained in pay raises okay so now i challenge you to do the same thing with helen let's read helen's scenario over the same time of span over the same span of time helen's salary increased from 29 000 to 44 950 we want to find her absolute difference and her relative difference so pause the video and try that on your own when you have your answer resume the video and it'll pop right up on the screen see you in a second all right welcome back so let's see here um i have found the absolute difference and relative difference for helen um helen's beginning salary over this three three-year span was 29 thousand dollars her ending salary was 44 950 so we're taking forty four thousand nine hundred fifty dollars as the compared value and subtracting the reference value of twenty nine thousand dollars to see how much money she's accumulated in pay raises and so over this three year span she's accumulated fifteen thousand nine hundred fifty dollars in pay raises if you take her ending salary and compare it to her beginning salary okay her relative difference is the fifteen thousand nine hundred fifty dollars divided by the reference value of 29 000 times 100 55 so what this means is over three years if you compare her salary at the end of that three-year span versus the salary at the beginning of that three year span she has earned 55 percent of her beginning salary and pay raises so in other words 29 000 was her beginning salary 55 of that 55 of 29 000 is 15 950 that is representative of her absolute total of pay raises over that time span so now let's compare the two and see who had the highest total pay raises in absolute terms and then the most in pay raises in relative terms so let's compare so as you can see i had to make my head a little smaller to fit everything on the screen helen over the three year span helen actually got a total of fifteen thousand nine hundred fifty dollars in pay raises versus clint's thirteen thousand eight hundred dollars so she got more money over that three year over that three year span in pay raises but if you look at their relative difference compare them together that what these two numbers represent is okay if you're looking simply at clint's information he has over that three year span at the end of three years versus the beginning of the three years he has gained 60 of his beginning salary in pay raises okay versus she's only gained 55 so in relative terms he's done more he's gotten more in pay raises because you're comparing his ending salary with his beginning salary she began with a higher salary got more money and pay raises in total in absolute terms however only 55 percent was gained if you compare to her beginning salary so he did better in terms of relative difference she did better in terms of absolute difference so i hope that was a good example if you have any questions let me know otherwise see you in the next one