Answer:
Absolute change is $157000.
The amount of relative change is -49.53%.
Step-by-step explanation:
We have been given that the average sale of a house decreased from $317,000 in February 2008 to $160,000 in February 2013. We are asked to find the absolute and relative change in the value of house.
To find the absolute change in value of house we will find the absolute difference between the value of house in year 2008 and 2013.
[tex]\text{Absolute change in the value of house}=|\$160000-\$317000|[/tex]
[tex]\text{Absolute change in the value of house}=|-\$157000|[/tex]
[tex]\text{Absolute change in the value of house}=\$157000[/tex]
Therefore, the absolute change in the value of house is $157000.
To find the relative change, we will use percent change formula to solve our given problem.
[tex]\text{Percent change}=\frac{\text{Original Value - Final value}}{\text{Original value}}\times 100[/tex]
[tex]\text{Percent change}=\frac{\text{\$160000-\$317000}}{\$317000}\times 100[/tex]
[tex]\text{Percent change}=\frac{\text{\-$157000}}{\$317000}\times 100[/tex]
[tex]\text{Percent change}=\frac{\text{-157}}{317}\times 100[/tex]
[tex]\text{Percent change}=-0.4952681388\times 100[/tex]
[tex]\text{Percent change}=-49.52681388\%\approx -49.53\%[/tex]
Therefore, the relative change in the value of house is approximately [tex]-49.53\%[/tex].
