Bound-2-Read was a national chain of bookstores that failed to respond quickly to the digital age. In fact, their annual revenue was 426 million dollars at the end of the fiscal year 2000, but by the end of fiscal year 2003 was down to 347.1 million dollars. We will assume that the annual revenue for Bound-2-Read continued to decrease according to an exponential decay model. We will find a function R(t) that gives Bound-2-Read's annual revenue in millions of dollars, where t=0 is the conclusion of the 2000 fiscal year. We will assume that R(t) is an exponential model with base b. In other words, Use this to complete the following. R(t) = yo - (b). (a) Translate the information given in the first paragraph above into two data points for the function R(t). List the point that corresponds with first. R0 R 3 426 347.1 (b) Next, we will find the two missing parameters for R(t). First, 30426 Then, using the second point from part (a), solve for b. Round to 3 decimal places. Note: make sure you have b accurate to 3 decimal places before proceeding. Use this rounded value for b for all the remaining steps. (c) Write the function R(t). R(t)= (d) Based on the answers to parts (b) and (c) above, we may conclude that Bound-2-Read's annual revenue decreased by a constant annual decay rate of (e) According to our model, in 2008 Bound-2-Read had an annual revenue of about million dollars (round to 2 decimal places). %. (f) What is the first full fiscal year where the annual revenue of Bound-2-Read will be below 164.8 million dollars? First solve for t and round to two decimal places. Then use t to answer the question (remember to round up to the next full year). t= According to our model, the first full fiscal year where Bound-2-Read's revenue will be below 164.8 million dollars is the year (g) We can also express this model in another equivalent form. In particular, we could find k such that Using the same yo as above, we find that k - (round to 3 decimal places). R(t)=yo-ek
Bound-2-Read was a national chain of bookstores that failed to respond quickly to the digital age. In fact, their annual revenue was 426 million dollars at the end of the fiscal year 2000, but by the end of fiscal year 2003 was down to 347.1 million dollars. We will assume that the annual revenue for Bound-2-Read continued to decrease according to an exponential decay model. We will find a function R(t) that gives Bound-2-Read's annual revenue in millions of dollars, where t=0 is the conclusion of the 2000 fiscal year. We will assume that R(t) is an exponential model with base b. In other words, Use this to complete the following. R(t) = yo - (b). (a) Translate the information given in the first paragraph above into two data points for the function R(t). List the point that corresponds with first. R0 R 3 426 347.1 (b) Next, we will find the two missing parameters for R(t). First, 30426 Then, using the second point from part (a), solve for b. Round to 3 decimal places. Note: make sure you have b accurate to 3 decimal places before proceeding. Use this rounded value for b for all the remaining steps. (c) Write the function R(t). R(t)= (d) Based on the answers to parts (b) and (c) above, we may conclude that Bound-2-Read's annual revenue decreased by a constant annual decay rate of (e) According to our model, in 2008 Bound-2-Read had an annual revenue of about million dollars (round to 2 decimal places). %. (f) What is the first full fiscal year where the annual revenue of Bound-2-Read will be below 164.8 million dollars? First solve for t and round to two decimal places. Then use t to answer the question (remember to round up to the next full year). t= According to our model, the first full fiscal year where Bound-2-Read's revenue will be below 164.8 million dollars is the year (g) We can also express this model in another equivalent form. In particular, we could find k such that Using the same yo as above, we find that k - (round to 3 decimal places). R(t)=yo-ek
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Bound-2-Read was a national chain of bookstores that failed to respond quickly to the digital age. In fact, their annual revenue was 426 million dollars at the end of the fiscal year 2000, but by the
end of fiscal year 2003 was down to 347.1 million dollars. We will assume that the annual revenue for Bound-2-Read continued to decrease according to an exponential decay model.
We will find a function R(t) that gives Bound-2-Read's annual revenue in millions of dollars, where t=0 is the conclusion of the 2000 fiscal year. We will assume that R(t) is an exponential
model with base b. In other words,
Use this to complete the following.
R(t) = yo - (b).
(a) Translate the information given in the first paragraph above into two data points for the function R(t). List the point that corresponds with first.
R0
R 3
426
347.1
(b) Next, we will find the two missing parameters for R(t). First,
30426
Then, using the second point from part (a), solve for b. Round to 3 decimal places.
Note: make sure you have b accurate to 3 decimal places before proceeding. Use this rounded value for b for all the remaining steps.
(c) Write the function R(t).
R(t)=
(d) Based on the answers to parts (b) and (c) above, we may conclude that Bound-2-Read's annual revenue decreased by a constant annual decay rate of
(e) According to our model, in 2008 Bound-2-Read had an annual revenue of about
million dollars (round to 2 decimal places).
%.
(f) What is the first full fiscal year where the annual revenue of Bound-2-Read will be below 164.8 million dollars? First solve for t and round to two decimal places. Then use t to answer the
question (remember to round up to the next full year).
t=
According to our model, the first full fiscal year where Bound-2-Read's revenue will be below 164.8 million dollars is the year
(g) We can also express this model in another equivalent form. In particular, we could find k such that
Using the same yo as above, we find that k
-
(round to 3 decimal places).
R(t)=yo-ek
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