

As height is involved there is potential energy associated with the system and is given by mgh Joules.
The loss of energy is given by ∆E/E where ∆E = mgh1 – mgh2 where h1 = 2m and h2 = 1.5m
∆E/E = (mgh1 – mgh2) / mgh1 = h1 – h2 / h1 = 2 – 1.5 / 2 = 0.5 = 1/4
