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Growth rate forecast using the constant growth model
The U.S. Bureau of the Census publishes employment statistics and demand forecasts for various occupations. (employment in 1,000)
Occupation 1998 2008
Bill collectors 311 420computer engineers 299 622physicians assistant 66 98respiratory therapist 86 123systems analysts 617 1194
A. Using a spreadsheet or handheld calculator, calculate the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.
B. Compare your answers and discuss any diffrenences.
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