Exponential

1. Maths. The exponential constant is a mathematical constant with a value of roughly 2.718, usually designated by the letter e.

2. Maths. The related exponential function is e^x (e to the power of x). The exponential function in Excel is =EXP( ). The exponential function is the inverse of the natural logarithm.

3. Statistics. Exponential growth means growth other than straight-line.

For example the series 100, 200, 400... is growing exponentially.

4. Statistics. Exponential decay means the reduction in a variable, for example over time, on a basis other than straight-line.

For example the reduction in the time value of an option, as its remaining time to maturity expires.

See also

• Exponential function
• Natural logarithm
• Time value