the United States, the revenue (money taken from sales) at a "full service" restaurant is creasing at a faster rate than the revenue at a "fast food" restaurantThe data below represent the nnual revenue in billions of dollars for each type of restaurantUse the data to answer the three uestions below. Let x=0 represent the year 1990.
Year
Full Service
2001
132
121
2002
139
123
2003
145
125
2004
152
130
Fast Food
1995
85
101
1999
112
110
2000
126
117
To answer the questions, we need to calculate the annual growth rate for both types of restaurants.
Full Service:
The growth rate from 1990 to 2001 is:
(132 - 0) / (2001 - 1990) = 132 / 11 = 12
The growth rate from 2001 to 2002 is:
(139 - 132) / (2002 - 2001) = 7 / 1 = 7
The growth rate from 2002 to 2003 is:
(145 - 139) / (2003 - 2002) = 6 / 1 = 6
The growth rate from 2003 to 2004 is:
(152 - 145) / (2004 - 2003) = 7 / 1 = 7
Fast Food:
The growth rate from 1990 to 1995 is:
(85 - 0) / (1995 - 1990) = 85 / 5 = 17
The growth rate from 1995 to 1999 is:
(112 - 85) / (1999 - 1995) = 27 / 4 = 6.75
The growth rate from 1999 to 2000 is:
(126 - 112) / (2000 - 1999) = 14 / 1 = 14
Based on the calculated growth rates, we can answer the following questions:
1. Which type of restaurant had the higher growth rate from 1990 to 2004?
From 1990 to 2004, the growth rate for Full Service is 7, and for Fast Food is 14. Therefore, Fast Food had the higher growth rate during this period.
2. Which type of restaurant had the higher growth rate from 2001 to 2004?
From 2001 to 2004, the growth rate for Full Service is 7, and for Fast Food is 14. Therefore, Fast Food had the higher growth rate during this period.
3. Which type of restaurant had the highest growth rate overall?
From the calculated growth rates, it is clear that Fast Food had the highest growth rate overall.