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Constant Growth Model
The U.S. Bureau of the Census publishes employment statistics and demand forecasts for various occupations.
Employment (1,000)
Occupation 1998 2008
Bill collectors 311 420
Computer engineers 299 622
Physicians' assistants 66 98
Respiratory therapists 86 123
Systems analysts 617 1,194
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 differences.
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