- Jun 1, 2006Hi all,

IMHO

If the conversion rate went from 1% to 1.2% which means that the conversion

rate went up by 20%, it's ok to state that. It just depends, as long as the

opther party understands what you are saying

LOL

MM

On 6/1/06, Peter Michael Sopp <peter.sopp@...> wrote:

>

> I'm just a poor sociologist not a mathematician. Nevertheless I'm hoping

> I could clarify the points already mentioned by others.

> The main point is to understand that the result of a substraction is a

> difference and not a percentage.

> The difference is April - March, so 1% - 1.2% = 0.2%-points. The result

> of a substraction is always a absolute number and never a percentage!

> To calculate the percentage growth or percentage increase you need a base:

> (April-March)/March = simple growth rate. Now you can multiply it by 100

> and you get 20% (= growth rate in percent: The difference of the

> percentages is related to the percentage of March).

> Let's give an interesting example:

> a1t1 = absolute number of visitors in March

> a2t1 = absolute number of buyers in March

> pt1 = percentage buyers March (buyers related to visitors:

> (a2t1/a1t1)*100)

> a1t2 = absolute number of visitors in April

> a2t2 = absolute number of buyers in April

> pt2 = percentage buyers April (buyers related to visitors:

> (a2t1/a1t1)*100)

> Now the following could happens: The number of visitors as well as the

> number of buyers decrease. Nevertheless the growth rate is positive

> because relativly more visitors has converted to buyers in April as in

> March.

> For example: In March you have a simple conversion rate of

> (10/1000)*100 = 1% and in April (6/500)*100=1.2%.

> The conclusion is - well that's up to you!

> Hope this was helpful

> Peter

>

> matpflum schrieb:

> > I have always struggled with the logic behind this seemingly simple 0

> > 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

> >

> >

> >

>

>

>

>

>

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