On PST's what's the consensus on percentage increase wording

PST
New answer on Oct 15, 2019
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Anonymous A asked on Oct 15, 2019

When do you multiply vs add/subtract. I'm seeing varying definitions on different non-official PSTs these are the ones i've seen so far E.g Current % = 50%

1. Increased by 10% = 50% * 1.10

2. Increased by 10% points = 50% + 10%

3. It is 6% lower = 50% - 6%

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Vlad
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replied on Oct 15, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

1. Increased by 10% = 50% * 1.10 - correct

2. Increased by 10% points = 50% + 10% - correct

3. It is 6% lower = 50% - 6% - depends on the basis. If the basis is in absolute terms (e.g.1Bn), then 6% lower is 1Bn * 0.94. If the basis is 50%, then 6% lower is most probably 50% - 6% (also 6% point lower)

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Vlad

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