By Lyle Clifford Smith

Mathematical and Physical Sciences, Bryan College, Dayton TN USA

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This scenario models the loss of employees and the employer's attempt to retain them through stock options. This is intended for introductory students and is paired well with exponential growth/decay material. We also introduce the 5% rule to sort possible factors into assumptions and modeling factors. Finally, iterative methods can be used to find a balance between growth and decay.

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Researchers should cite this work as follows:

  • Lyle Clifford Smith (2019), "1-109-S-EmployeeAttrition," https://www.simiode.org/resources/5996.

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