The computer industry has registered an exponential growth in the country. Data is given for this industry for 5 years, from 1997-2001. Find out the demand for the year 2005

Question: The computer industry has registered an exponential growth in the country. Data is given for this industry for 5 years, from 1997-2001. Find out the demand for the year 2005

Year	Sales (In Rs. Lakh)
1997	1.6
1998	4.5
1999	13.8
2000	402
2001	125

Solution:

Data on sales shows that there is an exponential growth. So, we have the following model.

Computation of exponential trend is shown in the following table.

On solving these two simultaneous equations, we have

A = log a = –0.2814 and B = log b = 0.4737

Therefore,
a = Antilog A = Antilog (–0.2814) = Antilog (–1.7186) =

0.5231

b = Antilog B = Antilog (0.4737) = 2.977

Y = ab^t

Y = (0.5231)(2.877)^t

For year 2005, t = 9

Y = (0.5231)(2.877)⁹

= Rs. 9,607.142 lakh

Thus, the demand for year 2005 is predicted as

Rs. 9,607.142 lakh.