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?

a.
0.22
c.
0.1824
b.
0.0496
d.
0.62

Answer 1

c.

0.1824

Explanation:

The computation of the decay factor is as follows;

= (1 - decrease percentage) × (1 - decrease percentage) × (1 - decrease percentage)

= (1 - 0.2) × (1 - 0.4) × (1 - 0.62)

= (0.8) × (0.6) × (0.38)

= 0.1824

hence, the decay factor is 0.1824

Therefore the option c is correct