I am doing research and have come across an estimate for quarterly
growth rate of subscribers from 2000 to 1999 as (1+1)^(1/2)-1. I can't
find the basis for making this estimate - can you?

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Request for Question Clarification by elmarto-ga on 21 Mar 2005 16:03 PST

Hi conmatre,
Could it be that the six-month growth rate was 100%?

Regards,
elmarto

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Clarification of Question by conmatre-ga on 22 Mar 2005 06:49 PST

Elmarto,

You nailed it - that is exactly what is going on. With that
clarification I set up the growth equation of Yt = Yo(1+r)^t to arrive
at the correct beginning subscriber level in 1999.

Thank you very much. You provided just the nudge that I needed to fill the gap.

Regards,
Conmatre

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Request for Question Clarification by elmarto-ga on 22 Mar 2005 08:27 PST

Hi conmatre,
I'm glad I could be of help to you. Would you like me to post that as
an answer so as to collect the $5 fee?

Best regards,
elmarto

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Clarification of Question by conmatre-ga on 22 Mar 2005 11:59 PST

Elmarto,

Yes, go ahead and post it as an answer. Your help was well worth the fee.

Thanks,
Conmatre

Hi conmatre,
Thank you very much for taking my answer!

Recall that in order to convert a compounding growth rate over x
periods, to 1 period, the formula is:

r1 = (1+rx)^(1/x) - 1

In your case, you had that the growth rate over 2 periods (2 quarters)
was rx=1 (100%). So the formula to find the growth over 1 period (1
quarter) would be the one you provided.

Best wishes!
elmarto