00:01
Hello, students, we are going to write here annual revenue for corning supplies grew by 5 .5 % in the 2007, 1 .1 % in 2008, minus 3 .5 % in 2009, minus 1 .1 % in 2010, and 1 .8 % in 2011.
00:18
What is the mean growth annual rate over this period? so we are going to write here for this.
00:24
The growth factor.
00:27
The growth factor.
00:33
For each period, for each period, we are going to write here for this is computed as we are going to write here growth factor.
00:52
So we are going to write here this must be growth factor.
00:57
We are going to write here this must be 1 plus 0 .1 multiplied by percentage period return percentage period return so if i write here for this this must be this must be the growth factor so in the first case we are going to to calculate growth factor in year 2007 that must be 1 plus 0 .01 so we are going to correct this this must be 0 .01 not 0 .01 this must be 0 .01 and 0 .01 multiplied by we are going to write here 5 for 5 percent so 5 .5 so this must be 1 .0 5 now growth factor 4 here, 2000 date, that must be.
02:04
So if i write here, this must be written as 1 plus 0 .01 multiplied by we are going to write here for this.
02:16
This is 1 .1.
02:18
That must be 1 .0 ,1 and the growth factor for 2009, that must be.
02:31
1 plus 0 .01 multiplied by minus 1 .1.
02:36
So this will be 1 minus 0 .01 which is 0 .989.
02:45
And we are going to write here growth factor in case of this is 2009 growth factor in case of 2010 this will come out as so this will come out as if i write here one point so this is we are going to write here in 2010 this must be so we are going to write here in 2010 we are going to write here this is minus 1 .1 so actually we are going to correct this in 2009 we are going to correct this must be for 2009 1 plus 0 .209 1 plus point is 01 and this is minus 3 .5 so this will be calculated as 0 .965 again this is 1 plus 0 .01 multiplied by minus 1 .1 that is equivalent to 0 .989 and if i write here growth factor for 2011 this is 1 plus 0 .1 multiplied by 1 .8 so this must be 1 .8 we are going to correct this so this value will be point.
03:57
So this value must be.
03:59
So this is 1 .8...