{"id":202022,"date":"2025-03-17T06:33:17","date_gmt":"2025-03-17T06:33:17","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=202022"},"modified":"2025-03-17T06:33:19","modified_gmt":"2025-03-17T06:33:19","slug":"under-which-of-the-following-cases-may-a-percentage-change-be-computed","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/17\/under-which-of-the-following-cases-may-a-percentage-change-be-computed\/","title":{"rendered":"Under which of the following cases may a percentage change be computed"},"content":{"rendered":"\n

Under which of the following cases may a percentage change be computed?<\/p>\n\n\n\n

a. The trend of the amounts is decreasing but all amounts are positive.
b. There is no amount in the base year.
c. There is a negative amount in the base year and a negative amount in the subsequent year.
d. There is a negative amount in the base year and a positive amount in the subsequent year.<\/p>\n\n\n\n

The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n

The correct answer is:<\/p>\n\n\n\n

a. The trend of the amounts is decreasing but all amounts are positive.<\/strong><\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

A percentage change is typically computed using the formula:<\/p>\n\n\n\n

[
\\text{Percentage Change} = \\left( \\frac{\\text{New Value} – \\text{Old Value}}{\\text{Old Value}} \\right) \\times 100
]<\/p>\n\n\n\n

To properly calculate a percentage change, the denominator (Old Value or Base Year Value) must be a meaningful reference point. Let\u2019s analyze each case:<\/p>\n\n\n\n

    \n
  1. Option (a): The trend of the amounts is decreasing but all amounts are positive.<\/strong><\/li>\n<\/ol>\n\n\n\n
      \n
    • This is a valid case for computing a percentage change. Even though the values are decreasing, as long as they remain positive, division is possible, and the percentage change can be calculated normally.<\/li>\n<\/ul>\n\n\n\n
        \n
      1. Option (b): There is no amount in the base year.<\/strong><\/li>\n<\/ol>\n\n\n\n
          \n
        • If the base year amount is zero, the denominator in the percentage change formula becomes zero. Division by zero is undefined, making it impossible to compute a valid percentage change.<\/li>\n<\/ul>\n\n\n\n
            \n
          1. Option (c): There is a negative amount in the base year and a negative amount in the subsequent year.<\/strong><\/li>\n<\/ol>\n\n\n\n
              \n
            • While mathematically possible, percentage changes involving negative values can be misleading. A percentage decrease or increase assumes a reference point that can logically grow or shrink, but negative numbers complicate this interpretation.<\/li>\n<\/ul>\n\n\n\n
                \n
              1. Option (d): There is a negative amount in the base year and a positive amount in the subsequent year.<\/strong><\/li>\n<\/ol>\n\n\n\n
                  \n
                • The percentage change formula would involve division by a negative base value, leading to a result that does not provide meaningful insight. Transitioning from a negative to a positive value suggests a fundamental shift rather than a relative change.<\/li>\n<\/ul>\n\n\n\n

                  Thus, only option (a) allows for a meaningful percentage change calculation.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                  Under which of the following cases may a percentage change be computed? a. The trend of the amounts is decreasing but all amounts are positive.b. There is no amount in the base year.c. There is a negative amount in the base year and a negative amount in the subsequent year.d. There is a negative amount […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-202022","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/202022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=202022"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/202022\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=202022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=202022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=202022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}