Annual revenue for Corning Supplies grew by 5.5% in 2007; 1.1% in 2008; -3.5% in 2009; -1.1% in 2010; and 1.8% in 2011. What is the mean growth annual rate over this period? Round your answer to four decimal places
Accepted Solution
A:
Answer:The mean growth annual rate over this period is 0.0036Step-by-step explanation:we know thatThe mean growth annual rate is calculated as the sum of each year's growth rate divided by the number of years[tex]\frac{5.5\%+1.1\%-3.5\%-1.1\%+1.8\%}{5}=0.36\%[/tex]Convert to decimal form[tex]0.36\%=0.36/100=0.0036[/tex]thereforeThe mean growth annual rate over this period is 0.0036