Algebra 1

Section 5.1

Exponential Modeling
Linear Change Versus Exponential Change

As studied in section 2, it is possible to use linear functions or equations to model the way
variables change with respect to each other. Linear functions can describe how a dependent reacts to
an independent variable increasing, including increasing, decreasing, and not changing. Additionally,
linear functions can describe slow changes or fast changes for a dependent variable. However, there is
a drawback to linear functions. They can only describe relationships with constant rates of change.

The dependent variable of every linear function changes by the same amount for a given change
in the independent variable. For example, consider the function

f (x) = 3x 1

Notice f (1) = 2, f (2) = 5, and f (3) = 8. Thus, f (2) f (1) = 3 = f (3) f (1), and it will be true
for any values x0 and x1 that f (x0 + 1) f (x0 ) = 3 = f (x1 + 1) f (x1 ). This is the nature of linear
functions: there is a common difference between the dependent variable for a constant change in
the independent variable.

However, consider a population. At first, the growth of the population will be slow, but as the
population becomes larger, it will grow at a faster rate. This makes it impossible to model a population
with a linear function, because the rate of change of the dependent variable over a constant interval
for the independent variable is not constant.

Additionally, there are radioactive elements which decrease in amount by half over a certain
interval called the elements "half-lives". If a radioactive substance is 20 units, its amount will be 10
units after one half-life, a difference of 10. However, after another half-life, its amount will be 5 units,
a difference of 5. The change in amount over a constant interval (one half-life) changes. Thus, a linear
function cannot describe this system either.

This section will explore exponential models which dont have a common difference, but a com-
mon ratio over a fixed interval. This means that for an exponential function f (x) and some value x0
in the domain of f (x), ff (x
(x0 +2)
0 +1)
= f (x 0 +1)
f (x0 ) .

Exponential functions can describe the situations discussed above where linear functions failed.
However, it is important to realize that sometimes linear functions are preferable to exponential func-
tions. The use of each type of function is situational, and in this section we will discuss in what
situations to use which type of function.

Exponential functions have the form

f (x) = anx + b

Where a, b, and n are constants. In simple exponential functions, a = 1 and b = 0. Always, n

is the common ratio of the exponential function with an interval of 1. Usually, f (x) = 1x = 1 is not
considered when people discuss "exponential functions" because this is a constant function without
any interesting. Thus, we assume n 6= 1, and we also assume n > 0 that the output is real.

1
Exponential Growth

As the independent variable of an exponential function increases, the dependent variable can
increase or decrease, depending on the value of n. If n > 1, then the dependent variable increases,
and the relationship is described as exponential growth. In such a function, the rate of change is
initially very small but becomes larger and larger.

Consider the function

f (x) = 2x

Clearly, 2 > 1, so this is an example of exponential growth. Notice f (1) = 2, f (2) = 4, and
f (3) = 8, so ff (3) f (2)
(2) = 2 = f (1) .

Also notice, the change in f (x) from x = 1 to x = 2 is 2, while the change in f (x) from x = 2 to
x = 3 is 4. Thus, with exponential growth, the rate of change increases as x increases.

Exponential Decay

If 0 < n < 1, then the dependent variable decreases as the independent variable increases, and
the relationship is described as exponential decay. In such a function, the rate of change is very
large (but negative) and gets smaller as x increases.

Consider the function

1x
f (x) = 2

Clearly 21 < 1, so this is an example of exponential decay. Notice f (1) = 1

2, f (2) = 1
4, and
f (3) = 81 , so ff (3) 1 f (2)
(2) = 2 = f (1) .

Also notice, the change in f (x) from x = 1 to x = 2 is 14 , while the change in f (x) from x = 2
to x = 3 is 81 , and | 14 | > | 81 |. Thus, with exponential growth, the rate of change decreases as x
increases.

2
Examples

Here are a few examples to test the concepts provided in this section. Answers can be found on
the following pages.

1. What is the common ratio of the exponential function f (x) = 3x over an x interval of 1?

2. The price of a book is $5, and one wishes to find out the price of b books. Would this be best
modeled by a linear function or an exponential function?

3. At the Aha Bank, a member earns 5% interest of the amount in their account every month. To
find out the amount in an account after t months with an initial investment P , does a linear
function or an exponential function best model the situation?

4. Which of the following is an exponential decay function?

A. f (x) = 2x2 1
B. f (x) = 21 3x 2
x
C. f (x) = 2 23

D. f (x) = 3x + 1 3

3
Solutions

These are the solutions to the questions on the previous page

1. The common ratio of an exponential function is the quantity (referred to as n) which is being
raised to a power of x. Here, the number being raised to x is 3, so the common ratio is 3.

2. The increase in price per additional book is constant, 5$, so this is best modeled by a linear
function.

3. The amount being added to the account depends on the amount already in the account, which
changes over time. As interest is continuously added to the account, the amount being added
each month will increase, as 5% of the amount in the account is added each month. Thus, since
the rate of change of the amount in the account is not constant, this situation is best modeled
by an exponential function.

4. The correct answer is C. The first function is a quadratic function and so not even exponential.
The second function is an example of exponential growth since the common ratio is 3 and 3 > 1.
The third function is an example of exponential decay since the common ratio is 23 and 32 < 1.
The fourth function is a radical function and is not even an exponential function.