Modelling with exponentials

[mandy]

A telecommunications business is projecting its future turnover so that appropriate advertising and staffing policies can be implemented. Research shows that the net turnover across the first five years of its establishment can be modelled by the equation T = T₀(e)+c where T represents the net annual turnover in millions and t represents the time in years from 1998. The turnover across the first five years is given below.

Time (t years)        Turnover (T million)
1                                    0.500
2                                    1.500
3                                    4.2183
4                                    11.6070

a. Find the equation that describes the net turnover in millions.
To find this, don't I need to know what the initial amount was?

[fady_22]

Can't you just substitute two points from the table and solve simultaneously for T0 and c?

[/0]

Not necessarily. The number of data points you need is equal to the number of unknowns.
? is that right?

Well just sub in any two points:

[mandy]

Oh, I got it now, thank you fady_22 and /0 :]