EXPONENTIAL DECAY

(Statistics) A rate of decay (decline) characterized by a fixed percentage each time period, e.g., a 10 percent decline in each period of time. Represented by the equation: N(t) = N0e-kt; where N(t) is the value of the variable at time period t, N0 is the initial value, e is the base of the natural logarithm, k is a constant value, and t represents the various time period where t = 1, 2, ..., n.