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Analyst Safa Rashtchy’s developed his 2010 forecast for eBay’s revenue by assuming that its annual growth would be about a 30 percent compounded…

Analyst Safa Rashtchy’s developed his 2010 forecast for eBay’s revenue by assuming that its annual growth would be about a 30 percent compounded annual growth rate between 2002 and 2010. In the previous year, eBay’s revenue had grown at the rate of 62 percent, and the firm forecast that its revenue would increase by 58 percent in 2003. Which, if any, of the behavioral elements described in Chapter 1 might have affected Rashtchy’s long-term forecast?

 

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