Last year the total revenue at macaroni grill decreased by 3.8% over the last two years. Based on this data what can be the exponential decay per month if this trend were to continue?

Answer 1

This should be done as an exponential decay problem. I assume you mean that over a period of 24months the total revenue decrease was 3.8%

Should use the formula Final amount - (Initial amount) x r^t.

r is decay factor and t is time

So r^24 = Final/Initial =( 1- .038) = .962 Take the 24th root of both sides to solve or t

t=.998

Answer 2

3.8% over 2 years =

3.8% over 24 months =

0.038/24 = 0.001583 = 0.1583% monthly