uppose there is a town which perenially follows these rules rules: The number of

Question

uppose there is a town which perenially follows these rules rules: The number of households always stays fixed at 10000. Every year 30 percent of households currently subscribing to the local newspa- per cancel their subscriptions. Every year 20 percent of households not receiving the local newspaper subscribe to it. (a) Suppose one year, there are 8 households taking the paper. According to the data above, these numbers will change the next year. The total of subscribers will be (0.7) (8000) (0.2)(2000) 6000

Explanation / Answer

a) The long term outlook is that subscription will keep falling by half the rate in next year as compared to previous year.

So, in first year it fell by 2000, next year it will fall by 1000, in next 500, in next 250 and so on.

So, the common difference everytime would be of the form (8000/2^x) where x is the year we want to see the number of suscribers. Eventually it will all fold down to 4000 subscription over the years.

b) No answer is this case would not change. In this case also the common difference will kwwp on halving from one year to the other year. So, the subscription will again boil down to 4000 people irrespective of the starting number.

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