The formula to calculate the Improvement Ratio (IR) is:
\[ IR = \frac{NP - OP}{OP} \]
Where:
An improvement ratio is a measure used to quantify the relative improvement in performance between two different states or conditions. It is often used in various fields such as business, engineering, and sports to evaluate the effectiveness of changes or improvements made. The improvement ratio provides a percentage or a decimal value that represents how much better the new performance is compared to the old performance.
Let's assume the following values:
Using the formula to calculate the Improvement Ratio:
\[ IR = \frac{120 - 100}{100} = \frac{20}{100} = 0.20 \]
The Improvement Ratio is 0.20, or 20%.
