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6. Distinguish between absolute and relative change. Give an example that illustrates how a relative change is calculated.
Distinguish between absolute and relative change. Choose the correct answer below.
A.
Absolute change describes the actual increase or decrease from a reference value to a new value. Relative change is the size of the absolute change in comparison to the new value and can be expressed as a percentage.
B.
Absolute change is the size of the actual increase or decrease from a reference value in comparison to the new value and can be expressed as a percentage. Relative change describes the actual increase or decrease from a reference value to a new value.
C.
Absolute change describes the actual increase or decrease from a reference value to a new value. Relative change is the size of the absolute change in comparison to the reference value and can be expressed as a percentage.
D.
Absolute change is the size of the actual increase or decrease from a reference value in comparison to the reference value and can be expressed as a percentage. Relative change describes the actual increase or decrease from a reference value to a new value.
7.Give an example of how "percent" (%) and "percentage points" can differ for the same situation. Choose the correct answer below.
A.
Consider a savings account that previously offered 2% interest and now offers 6% interest. The percent increase is 300% and the percentage point increase is 4.
B.
Consider a savings account that previously offered 2% interest and now offers 6% interest. The percent increase is 4% and the percentage point increase is 200.
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