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Consider the missing part of the question is "Select the correct statement.
A. The number of employees is increasing by 50% every year.
B. The number of employees is decreasing by 10% every year.
C. The number of employees is decreasing by 90% every year.
D. The number of employees is increasing by 90% every year."
Given:
The function is:
Where, f(t) is the number of employees working at a company, in thousands and t is the number of years since the company revised the benefits package.
To find:
The correct statement from the given options.
Solution:
The general exponential decay model is:
...(i)
Where, a is the initial value, r is the rate of decay and t is the number of years.
We have,
It can be written as
...(ii)
From (i) and (ii), we get
The initial value is 1.5 and the rate of decay is 0.10 or 10%. It means the number of employees is decreasing by 10% every year.
Therefore, the correct option is B.
