Sales in a company are $188 million in 2009 and increase $208 million in 2010. Compute the percentage increase in sales using the usual formula Compare this value to the approximation The approximation performs (1). percentage change increases. 100 x (1) O better (2) O deteriorates O worst O improves (Sales 2010 - Sales 2009) Sales 2009 100 x [In (Sales 2010) -In (Sales 2009)]= (Express your response as a percentage and round to three places) Now, assume that sales in a company are $188 million in 2009 and increase $264 million in 2010. 100 x- 100 x [In (Sales 2010) -In (Sales 2009)] (Sales 2010 - Sales 2009) Sales 2009 100 x- (Sales 2010 - Sales 2009) Sales 2009 100 x [In (Sales 2010) -In (Sales 2009)]= (Express your response as a percentage and round to three places) - when the change is small. The quality of the approximation (2). as the
Sales in a company are $188 million in 2009 and increase $208 million in 2010. Compute the percentage increase in sales using the usual formula Compare this value to the approximation The approximation performs (1). percentage change increases. 100 x (1) O better (2) O deteriorates O worst O improves (Sales 2010 - Sales 2009) Sales 2009 100 x [In (Sales 2010) -In (Sales 2009)]= (Express your response as a percentage and round to three places) Now, assume that sales in a company are $188 million in 2009 and increase $264 million in 2010. 100 x- 100 x [In (Sales 2010) -In (Sales 2009)] (Sales 2010 - Sales 2009) Sales 2009 100 x- (Sales 2010 - Sales 2009) Sales 2009 100 x [In (Sales 2010) -In (Sales 2009)]= (Express your response as a percentage and round to three places) - when the change is small. The quality of the approximation (2). as the
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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