How to interpret "reduced by" in a math problem [closed]

If a question says the amount is reduced by 1/4, what does it mean?

For instance, say it's 8

Does it mean:

8 * 1/4 = 2. So, the new amount is 2.

OR

It's 8 - 2 = 6. So, the new amount is 6.


Solution 1:

If the amount 8 has been reduced by .25 of itself, it means the new amount is 6.

If the amount 8 has been reduced to .25 of itself, it means the new amount is 2.