12
RCMultiple Choice

Cumulative Exam — Cumulative exam

Question 12 • Mathematical Models with Applications - MA4072 CR

Your local Ford dealership is having a sale. All 2008 model trucks have been reduced by 15% and for a limited time, all trade-ins will discount the truck an additional 5%. Given this information, determine the decay factor corresponding to each percent decrease.

Answer
A
0.85; 0.95
B
85; 95
C
15; 5
D
0.15; 0.05

Explanation

A decay factor for a percent decrease is 1 minus the decrease written as a decimal. For a 15% decrease, the factor is 1 − 0.15 = 0.85; for a 5% decrease, it is 1 − 0.05 = 0.95. So the correct choice is “0.85; 0.95.”

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