Practice Test 2 - Question 25

Formula for Exponential Decay
y = a(1 - r)^x
f (x) = 1000(½)^x
(1 - r) = (½) implies r = ½
The average rate of change is ½ or 0.5 or 50%.

This can also be determined by looking at the data in the problem. From decade 1 to decade 2 the data dropped from 500 to 250 which is a drop of 50%.

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