Business I / First-Order Differential Equations
Practice question · True or false

An exponential decay model stays accurate all the way down to the last few units of the quantity.

Hints
  1. What does the model assume about the population?
  2. Averages stop working when the numbers get small.
Show the answer

False

Why

False. Exponential decay is a continuous average over many units; once few remain, individual randomness dominates and the smooth curve stops describing anything. The model never reaches zero mathematically, and the real quantity does, the mismatch is a sign of leaving the model's domain.

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