OtherExponentialModelsand Examples
Not all exponentialgrowthsand decaysare modeledin the naturalbase or by Actually, in
everydaylife mostare constructedfromempiricaldataand regressiontechniques.For example,in the
businessworldthe demandfunctionfor a productmay be describedby the formula
where is the priceper unit and is the numberof unitsproduced.So if the businessis interestedin
basingthe priceof its unit on the numberthat it is projectingto sell, this formulabecomesvery helpful.If a
motorcyclefactoryis projectingto sell unitsin one month,whatpriceshouldthe factoryset on each
motorcycle?
Thusthe factory’s basepricefor eachmotorcycleshouldbe set at
As anotherexample,let’s say a medicalresearcheris studyingthe spreadof the flu virusthrougha certain
campusduringthe wintermonths.Let’s assumethat the modelfor the spreadis describedby
where representsthe total numberof infectedstudentsand is the time,measuredin days.Suppose
the researcheris interestedin the numberof studentswho will be infectedin the next week( days).
Substituting into the model,