Way to compare unit /1000 values.

#1
Hi, I’m facing unusual situation when auditor asked me why change between 2 years values are so high, however she did via percentage change like below pointing that change = 6.45% between years and is more then 5% (our threshold) and it’s significant in our situation.

I don’t think this is correct, once we already applied ratio and calculation .
Think correct to say that diff = 3.23. Am I right ? Trying to prepare myself to fight of my case.

Thanks much.
M
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obh

Active Member
#2
Hi Mario,

Just to understand your case.
what do you mean by policy per 1000 members?
Isn't more policies good? why?

Per my understanding, If the measurement is policy/1000 member change in the measurement is from the measurement.
So 1 percent of 50 is 0.5
So the difference in the measurement is +3.23 which is 3.23/50*100 percentages ...+%6.46
 
#3
Thanks OBH! This is just a general question if you can apply percentage change with this simple formula (3.23/50*100) to the values which already went thru relative (division) calculations (30K/60K*1000).
For this sample higher values per 1000 is better ,but it's not really matters in the context .
My opinion that we CAN NOT use 6.45% in comparison. You apply relative to relative, so it doesn't make too much sense.

Tx
M
 
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obh

Active Member
#4
Hi Mario,

One percentage is just the value divided to 100, (1/100 of the value)
So if you can divide by 100 you can use percentages.
You can even take the percentages of percentages.

So you need to read your contract/agreement what is the exact definition.