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Linear and Exponential Growth Models

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These are the sales data for two companies A and B over three years. Company A is witnessing a linear growth in sales while company B is witnessing an exponential growth in sales. The sales data for 2000 and 2002 is shown.

Year A B
2000 $100 $100
2001
2002 $140 $140

Choose suitable sales data for companies A and B for the year 2001 so that A shows linear growth while B shows an exponential growth and explain the rationale for your choice.

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Solution Summary

The solution calculates the suitable sales data for 2001 with the help of given information.

Solution Preview

Linear growth means increase or decrease will be at constant rate.

Constant rate of increase in case ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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