How is percentage difference calculated?

The percentage difference is calculated by taking the difference between two values and dividing it by the average of those two values, then multiplying by 100 to express it as a percentage. This method allows for a standardized comparison of the two values relative to their average rather than just one of the values alone.

For instance, if you have two measurements, say 25 and 30, the difference is 5. The average of these numbers is 27.5. When you calculate the percentage difference, you take the difference (5) and divide it by the average (27.5), which gives you a relative measuring scale that reflects the size of the difference relative to the average size of both values. This approach highlights how significant the difference is in context, allowing for meaningful comparisons across different data sets.

Other methods of calculating differences, such as dividing by the total or the initial value, do not provide the same context or significance in relation to the values being compared, which makes them less useful in determining percentage differences.