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2.4 — Getting Down to Business
1. In class: A Solidify Understanding Task
Build two business-growth models
Two companies begin with different net incomes in 2010. Net income means the money left after expenses. We will measure it in millions of dollars per year, and let t be the number of years after 2010. Thus t=0 means 2010, and t=5 means 2015.
Calcu-rama begins at $5 million and plans to add $0.5 million every year. When a quantity increases by the same amount each year, use a linear model.
At the starting year, t=0, net income is 5 (million dollars). Each additional year adds 0.5:
| t (years since 2010) | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Calcu-rama (million $) | 5 | 5.5 | 6 | 6.5 | 7 |
Why: 5 is the starting amount and 0.5 is the increase per year. The graph is a straight line with slope 0.5. At t=8:
For yearly checkpoints, an equivalent recursive rule is
Computafest begins at $2 million and aims to grow by 15% of the previous year's amount each year. A 15% increase means that the next value is 100% + 15% = 115% of the preceding one.
The first few yearly values are:
| t | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Computafest (million $) | 2 | 2.30 | 2.645 | 3.04175 | 3.4980125 |
Why: each new value is the previous value multiplied by 1.15. The recursive form at whole-number years is
The increase in the first year is
A linear model adds the same amount each year:
Compare the companies over time
At first, Calcu-rama has higher projected income. Computafest starts much smaller, but as its income grows, each 15% increase becomes larger in actual dollars.
| Year | t | Calcu-rama | Computafest |
|---|---|---|---|
| 2010 | 0 | 5.00 | 2.00 |
| 2020 | 10 | 10.00 | 8.09 |
| 2022 | 12 | 11.00 | 10.70 |
| 2023 | 13 | 11.50 | 12.31 |
| 2030 | 20 | 15.00 | 32.73 |
In 2022 Calcu-rama is still ahead. At the 2023 annual checkpoint, Computafest has overtaken it. At t=20 the exponential model predicts more than twice the linear model's income.
Finding when the models match
We want to know when
This equation contains t both as a regular number and in an exponent, so the algebra methods learned so far do not isolate t easily. Use a table or a graph, then estimate between the last year one company leads and the first year the other leads.
- At
: Calcu-rama is 11.00 and Computafest is about 10.70, so Computafest is still behind. - At
: Calcu-rama is 11.50 and Computafest is about 12.31, so Computafest is ahead. - The models therefore meet between t=12 and t=13 if we treat both as smooth functions of elapsed time.
- Using a graphing calculator or numerical estimate gives
years after 2010. This is an approximation from the chosen models, not a guaranteed business outcome.
If only annual checkpoints are modeled, there is no whole-number year when the two projected values are exactly equal. The first whole-number year Computafest comes out ahead is 2023.
Will they meet again in future years? By 2023, the exponential company's next year's increase is already larger than Calcu-rama's fixed $0.5 million increase:
The exercise asks which company you would choose to invest in. Projected net income alone is not enough to decide which investment is better. The exercise can be answered as a comparison of the two growth models; a real investment decision would also depend on stock price, risks, whether the forecasts come true, and many other factors.
Choose what the model tells you between years
Two models can use the same formula but have different domains (permitted inputs).
| Model choice | Domain and meaning | Graph |
|---|---|---|
| Yearly snapshots | t=0,1,2,3,...; the model provides a value only at each annual checkpoint | Isolated points |
| Smooth projection | Every real time t≥0; the model estimates values between annual checkpoints | Connected line or curve |
A business's actual yearly net income is normally determined over a reporting period, not smoothly earned at exactly the predicted rate. That doesn't prevent a smooth curve from being a useful approximation for planning. A discrete-year model avoids suggesting we know the precise income at every instant.
Discrete does not mean “outputs are whole numbers.” Net income can take decimal values in millions of dollars, even if we calculate it only at whole-number years. The discrete or continuous domain depends on which input times our model permits. A smooth formula is not evidence that actual business income changes smoothly at every instant.
2. READY — Complete arithmetic and geometric sequences
Study the worked examples first, then try the problems yourself. An answer key at the bottom of this section is provided to check your work.
Arithmetic: four equal additions
From the first to the fifth term there are four steps, not five. If the first term is a and the fifth is z, each arithmetic step adds
The first term is 8 and the fifth is 28. There are four steps, so
| Term | 1st | 2nd | 3rd | 4th | 5th |
|---|---|---|---|---|---|
| Value | 8 | 13 | 18 | 23 | 28 |
Check: each step adds 5, and four additions of 5 give the total change of 20.
Geometric: four equal multiplications
For a geometric sequence with common ratio r, the fifth term is the first term multiplied by r four times:
We usually try a simple positive ratio first. But because a negative number multiplied by itself four times is positive, a negative common ratio can also work when four steps connect endpoints of the same sign.
First term 3; fifth term 48:
Both
| Ratio | 1st | 2nd | 3rd | 4th | 5th |
|---|---|---|---|---|---|
| +2 | 3 | 6 | 12 | 24 | 48 |
| −2 | 3 | −6 | 12 | −24 | 48 |
Both use a constant multiplication factor and reach the same fifth term. For purely geometric sequences on integer indices, negative ratios are valid. For the usual real-valued exponential growth functions, the exponential base is positive.
The worked example uses a positive common ratio, but Problems 1–3 do not restrict the sign of the ratio. Both positive and negative common ratios give valid geometric sequences for these problems.
Module 1, Section 1.10 (“Geometric Meanies”) explicitly teaches students to consider whether geometric sequences can have more than one solution. That applies here, too.
For example, in Problem 1, both 3, 6, 12, 24, 48 and 3, −6, 12, −24, 48 are valid geometric sequences. Their common ratios are 2 and −2, respectively.
Both sequences satisfy the given first and fifth terms. The packet does not say that only positive ratios are allowed.
When the endpoints are negative, the pattern works the same way. For example, a sequence beginning at −80 and ending at −5 has positive ratio
Check your work — Ready 1–3 answer key
- Arithmetic: \(14.25,25.5,36.75\). Geometric: \(6,12,24\); ratio \(-2\) also gives \(-6,12,-24\).
- Arithmetic: \(-4690,-3130,-1570\). Geometric: \(-1250,-250,-50\); ratio \(-\frac15\) also gives \(1250,-250,50\).
- Arithmetic: \(-9.1875,-6.375,-3.5625\). Geometric: \(-6,-3,-1.5\); ratio \(-\frac12\) also gives \(6,-3,1.5\).
3. SET — Distinguish sequences from continuous-domain models
Study the worked examples first, then try the problems yourself. An answer key at the bottom of this section is provided to check your work.
Read the domain notation
The domain is the set of allowed inputs. Sets in the homework are written using symbols such as
| Symbol | Meaning at this level | Examples |
|---|---|---|
| Real numbers, including decimals and fractions | −1, 0, 0.4, √2, 3 | |
| Rational numbers (can be written as a fraction) | −1/2, 0, 2/3, 7 | |
| Integers (no fractional parts) | −2, −1, 0, 1, 2 | |
| Whole numbers | 0, 1, 2, 3, ... | |
| Natural numbers; often 1,2,3,..., but some textbooks include 0 | 1, 2, 3, ... |
For example,
Compare the two expressions:
Both use a linear rule. The first is a discrete arithmetic sequence with separate allowed inputs. The second is a continuous linear function defined for all nonnegative real times. The rule is the same; the domain is different.
Recursive and explicit descriptions
A recursive sequence describes how the next term follows the previous. An explicit rule computes a value directly from the input:
| Pattern | Recursive (whole-number index n) | Explicit |
|---|---|---|
| Arithmetic | ||
| Geometric |
In the packet, formulas with
Compare
For
D is the expected answer in this textbook. Arithmetic and geometric sequences are conventionally indexed by natural numbers, often 1, 2, 3, ...
However, C is also mathematically valid. A sequence can begin at index 0, giving the domain {0, 1, 2, 3, ...}. Both starting conventions are standard; some textbooks also include 0 among the natural numbers.
For Set Problem 9, the attributes shared by arithmetic and geometric sequences include having separated input values, having some consistent feature (difference or ratio), and admitting recursive rules. The specific domain is often a subset of the integers; not every sequence must start at the same index or extend forever.
Check your work — Set 4–11 answer key
- A: nonnegative real inputs.
- D: \(\{x\mid x\in\mathbb N\}\).
- B: \(g(x)=5\cdot4^x\).
- C: \(h(t)=3t-5\).
- D for a sequence starting at 1; C is also appropriate when indexing starts at 0. Both use separate whole-number indices.
- B, C, F, G under the packet’s positive-integer indexing: discrete; natural-number domain; constant difference or ratio; a recursive rule.
- Arithmetic sequences follow linear rules at separate term indices. A continuous linear function includes all real inputs in its stated interval.
- Geometric sequences follow exponential rules at separate term indices. A continuous exponential function includes fractional inputs too.
4. GO — Write equations from tables and graphs
Study the worked examples first, then try the problems yourself. An answer key at the bottom of this section is provided to check your work.
From a table: check equal differences and equal factors
Use the x-values as well as the outputs. When x increases by 1 each row:
| Same addition | Same multiplication |
|---|---|
| Linear: | Exponential: |
| x | 2 | 3 | 4 | 5 |
|---|---|---|---|---|
| f(x) | 1 | −3 | −7 | −11 |
Each increase of 1 in x decreases f by 4, so
Answer:
| x | −2 | −1 | 0 | 1 |
|---|---|---|---|---|
| f(x) | 32 | 16 | 8 | 4 |
Each output is half the previous output, so
Check:
From a graph: use actual coordinates
For a straight line, read two precise grid-intersection points, calculate
A graphed line goes through
Use
An increasing exponential curve crosses the y-axis at 3 and passes through
Check another point: when x=2 the model predicts 12, and when x=−1 it predicts 1.5.
Go Problems 12–15: The tables include negative outputs and negative input values. A valid exponential model may have a negative starting multiplier a while retaining a positive base b. For example,
The bonus graph crosses the x-axis and curves downward; it is not a basic function of the form
Quick check before accepting an equation
- Initial value: Does substituting x=0 (when available) reproduce the y-intercept?
- Pattern: Does the line add the same output difference per unit x, or does the exponential multiply by a fixed factor?
- Test: Does your equation correctly reproduce at least two other listed points?
- Graph: Is the plotted direction and shape consistent with the sign of the slope or the exponential base?
Check your work — Go 12–21 answer key
For the unlabeled grids in 16–21, these equations assume one square represents one unit on each axis. A different scale changes the numerical equations.
- \(f(x)=-7x+10\).
- \(f(x)=2\cdot5^x\).
- \(f(x)=-6\cdot2^x\).
- \(f(x)=\left(\frac13\right)^x\).
- \(y=-\frac13x+2\).
- \(y=4^x\).
- \(y=-x+1\).
- \(y=\frac12\cdot2^x\).
- \(y=-4x-4\).
- One compatible shifted exponential is \(y=2-2^x\).
Additional Learning Resources
| Resource & direct link | What it teaches | Scope / What to skip |
|---|---|---|
| Khan Academy — Linear vs. exponential growth from data | Identify linear and exponential patterns from tables and build growth models; particularly useful for main task parts a–d and Go tables. | Close match. Focus on deciding which pattern fits the inputs and outputs. |
| Paul's Online Math Notes — Exponential Functions | Explains exponential form and interprets its graph, with worked examples. | Some extra material. Use the opening definition and introductory graphs; skip the longer discussion of the special constant e and advanced graph behavior. |
| Professor Leonard — Exponential Growth and Decay (College Algebra 66) | Optional extended lecture about percent-change models. | Significantly broader. Focus on basic percent growth and decay; skip half-life and Newton's law of cooling. Specific timestamps could not be verified. |
| OpenStax — 4.2 Modeling with Linear Functions | Additional worked explanations of converting an initial amount and constant growth rate into a linear formula. | Some extra material. Read the opening model-building examples; skip advanced fitting/estimation discussions. |
Teacher's Review of the Original MVP Packet
The central business-comparison task has a sound mathematical purpose, and the teacher's manual explicitly invites either discrete-year or smooth modeling assumptions. The following are the issues that warrant clarification.
Set, Problem 9 — “Always” needs a domain convention
The prompt treats a sequence domain as though it must be the entire set of natural numbers. But finite sequences, zero-indexed sequences, and other integer-indexed sequences are legitimate. A more precise statement is that an arithmetic or geometric sequence has an integer-indexed domain (often consecutive nonnegative or positive integers), a constant difference or ratio, and an appropriate recursive description.
Go, Problems 16–21 — Reading graphs and extending the model
Students must infer grid scales where numerical labels are not shown, and the optional Problem 21 is a curve crossing the x-axis, unlike a basic unshifted exponential. The worksheet should state “one grid square represents one unit” where intended and clearly label Problem 21 as requiring a different, shifted exponential model. The bonus designation appropriately signals extra challenge, but it does not specify the new function form.
Curriculum Coverage
| MVP assignment | Required skills | Where taught |
|---|---|---|
| Main a–b (p. 22) | Construct and compare linear/exponential equations, tables, and graphs | In class; worked examples 1–3; original comparison graph |
| Main c–d (p. 23) | Interpret forecasts; estimate crossover using table/graph; understand long-run growth | In class; worked example 4 and packet clarification |
| Main e (p. 23) | Choose discrete-year versus smooth real-domain models | In class |
| Ready 1–3 (p. 24) | Four equal arithmetic steps; geometric ratios and sign ambiguity | Section 2; worked examples 5–6 and red clarification |
| Set 4–5 (p. 24) | Real, rational, integer, whole, and natural-number domain sets | Section 3, notation table |
| Set 6–11 (p. 25) | Recursive/explicit rules; domains and arithmetic/geometric families | Section 3; worked examples 7–8 and red clarification |
| Go 12–15 (p. 26) | Recover linear and exponential rules from tables | Section 4; worked examples A–B |
| Go 16–21 (p. 26) | Recover equations from graphs; distinguish the optional extension | Section 4; worked examples C–D and bonus clarification |
Worked examples are original, not copies of the packet answers. Packet page numbers above refer to printed pages, not the PDF viewer's page numbers.
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