The metropolitan area of Los AngelesLong Beach California sh

The metropolitan area of Los Angeles–Long Beach, California, showed the largest increase in the number of jobs between 1984 and 2011. The number of jobs increased from 5,157,500 to 6,271,100. What was the geometric mean expected yearly rate of increase? (Round your answer to 2 decimal places.)

Solution

Let r = the yearly rate of increase

Thus,

A = Ao (1+r)^n

6271100 = 5157500 (1+r)^(2011-1984)

6271100 = 5157500 (1+r)^27

6271100/5157500 = (1+r)^27

1.215918565 = (1+r)^27

1+r = 1.007267011

r = 0.007267011 or 0.73% [ANSWER] [ANSWER]