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Exercises 8.1 Sales in a company are $196 million in 2013 and increase to $198 million in 2014. a. Compute the percentage increase in
Exercises 8.1 Sales in a company are $196 million in 2013 and increase to $198 million in 2014. a. Compute the percentage increase in sales, using the usual formula (Sales 2014 Sales2013) 100 x Compare this Sales2013 value to the approximation 100 [In (Sales2014) - In (Sales 2013)]. b. Repeat (a), assuming that Sales 2014=205, Sales 2014 = 250, and Sales 2014 = 500. c. How good is the approximation when the change is small? Does the quality of the approximation deteriorate as the percentage change increases?
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