Question

What is the decay factor that corresponds to a product that decreases its value first by 20%, and than decreases by 40% of its value, and finally decreases by 62% of its value?

Answer 1

Answer: The decay factor that corresponds to a product is 18.24%.

Explanation:

Since we have given that

Rate of decrement firstly = 20%

Rate of decrement secondly = 40%

Rate of decrement finally = 62%

As we know that

Decay factor is given by

`(1-(r_1)/(100))(1-(r_2)/(100))(1-(r_3)/(100))\\\\=(1-0.20)(1-0.40)(1-0.62)\\\\=0.80* 0.60* 0.38\\\\=0.1824\\\\=18.24\%`

Hence, the decay factor that corresponds to a product is 18.24%.

Answer 2

(1-0.2)(1-0.4)(1-0.62) = (0.8)(0.6)(0.38) = 0.1824

Answer: 0.1824