Estimating the constant growth model

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Constant Growth Model

The U.S. Bureau of the Census publishes employment  statistics and demand forecasts for various occupations.

Employment (1,000)

Occupation                                                                      1998                                       2008

Bill collectors                                                                     311                                          420

Computer engineers                                                         299                                          622

Physicians' assistants                                                        66                                             98

Respiratory therapists                                                       86                                           123

Systems analysts                                                              617                                       1,194

A. Using a spreadsheet or handheld calculator, calculate the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.

B. Compare your answers and discuss any differences.

Reference no: EM13967124

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