- May 31 5:46 PMTechnically both are correct, however it is more common the refer to the difference between two %s as "percentage points difference". In banking, the difference is referred to as "basis points", where 1 basis point= 1/100 of 1%. So, 1%=100bp, and 0.2% = 20bp.

Hakim

Andrew Edwards <aedwards@...> wrote:

>I'm no math genius but I am pretty sure the *increase* between 1% and

__________________________________________________________________

>1.2% is 20%. It might also be called (uncharitably) an additional 0.2%

>overall on total percentage of conversions, but then you're confusing

>the word "additional" with the notion of "increase by percentage".

>

>--Andrew Edwards

>

> Ted Callier wrote:

>

>>On Wed, 31 May 2006 19:38:39 -0000

>>"matpflum" <matpflum@...> wrote:

>>

>>

>>

>>>I have always struggled with the logic behind this seemingly simple

>>>question. Doesn't it make more sense to say that if the conversion

>>>rate was 1% in March and is 1.2% in April, that the rate increased

>>>by .2% and not 20%? So it's a simple subtraction. I'm not a

>>>mathematician, but I think that it is wrong to compute a percentage

>>>of a percentage because the percentages were calculated off of

>>>different bases. Are there any mathematicians who can explain which

>>>way is correct? Thanks.

>>>Maureen

>>>

>>>

>>

>>If you want to show the difference by doing a substraction, this is

>>called "percentage point", .2 percentage points(not .2% !) in your

>>example.

>>

>>If you use percentages, you can apply them to percentages w/o problems

>>as long as both measure the same thing, conversion in your example.

>>

>>So conversion increased by 20%, or .2 percentage points, from 1% in

>>March to 1.2% in April.

>>

>>And as you have no reason to believe me, see youself what Wikipedia has to say:

>>http://en.wikipedia.org/wiki/Percentage and http://en.wikipedia.org/wiki/Percentage_point

>>

>>

>>

>>

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