Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ALL WORK MUST BE SHOWN in order to receive any credit for the question. Please do work neatly and legibly on a separate sheet for

image text in transcribed

image text in transcribed

ALL WORK MUST BE SHOWN in order to receive any credit for the question. Please do work neatly and legibly on a separate sheet for submission. Do not forget to label and interpret every answer! Case Study 5 The annual revenue of Amazon.com, in billion $, is shown below. Year 2006 2007 2008 2009 2010 Revenue (billion $) 10.711 14.835 19.160 24.509 34.204 Year 2011 2012 2013 2014 2015 Revenue (billion $) 48.077 61.093 74.452 88.989 107.006 Year 2016 2017 2018 2019 2020 Revenue (billion $) 135.987 177.866 232.877 280.522 386.064 1. Sketch a good graph of the data. Let the horizontal axis be time in years after 2000. (2006 is x = 6, etc). The vertical axis will represent revenue, in billion $. You may want to let each tick mark be a larger unit, like $25 or $50 billion. Please label your axis so that it is clear what unit you are using. 2. Based on your graph, how would you describe the changes in Amazon's revenue? (increasing or decreasing? At a faster or slower rate?) X 3. Amazon's revenue as a function of time, where time x is years after 2000, can be modeled by the exponential function R(x) = 2.738e0.2478. Use the model to estimate 3. Amazon's revenue as a function of time, where time x is years after 2000, can be modeled by the exponential function R(x) = 2.738e0.247%. Use the model to estimate revenue for 2021. How accurate do you think this prediction is, and why? 4. Amazon's most recent financial report shows revenue of $221.60 billion for the first half of 2021. How does that compare to your estimate in the previous question? 5. At what rate was Amazon's revenue changing in 2010? In 2016? Remember to label and interpret answer. 6. What was Amazon's marginal revenue in 2020? What does this say about the revenue for 2021? 7. Evaluate R"(10) and R"(20). Be sure to label and interpret the answers. How do these answers help justify your answer to question 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

Students also viewed these Accounting questions