3. Add the squares of the entries in column (2): 12 + 52 + 122 + 172 + 212 + 272 + 333 + 382 = 4162 4. Add the products of the entries in column (2) times the entries in column (8): (1)0 + 5(-.231) + 12(-.574) + 17(-.816) + 21(.-.997) + 27(-.1.093) + 33(-1.509) + 38(-1.262) = -170.1 5. The parameter "b" equals the result in step 4 divided by the result in step 3: -170.1 4162 = -.04087 6. The equation is y = e-'04087t 7. Cases remaining can now be estimated for any time period between one and 38 months. For example, the estimated proportion of cases remaining after 24 months in the system would be calculated as follows: Y = 2.7182818-.04087(24) Y = 2.7182818-.98088 Y = .375 or 37.5 percent 8. The time required for a firm to lose a given proportion of cases can also be calculated. The formula below will allow you to solve for t given Y: t = In Y b For example, to calculate the number of months it would take for half the cases to leave the system, take the natural log of .50, divid the resulting logarithm by -.04087, the estimated "b" value discussed above. t = -0.693147 = 16.96 months -0.04087