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course Mth 271

9/13 930pwish all the questions were business-related. That is something I understand!

002.

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Question: `qNote that there are four questions in this assignment.

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Question: `q001. Recall the stock value problem, where March, July and December values were $5000, $5300 and $5500.

Construct a graph of stock value vs. number of month (e.g., 1 for Jan, 2 for Feb, etc.). You will have three points on your graph, one corresponding to the March value, one to the July value, and one to the December value. Stock value will be on the y axis and month number on the x axis. Your first point, for example, will be (3, 5000), corresponding to $5000 in March.

Connect your three points with straight lines--i.e., connect the first point to the second and the second to the third.

What is the slope of your line between the first and second point, and what is the slope of your line between the second in the third point? Recall that slope is rise / run.

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Your solution:

From 2nd to 1st point:

5300-5000 = 300

__________________ Slope = 300/4 = 75

7-3 = 4

From 3rd point to 2nd point:

5500-5300 = 200

________________

12-7 = 5 Slope = 200/5 = 4

confidence rating #$&*:3

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Given Solution:

`aThe three points on the graph are (3, 5000), (7, 5300) and (12, 5500).

The rise between the first point and the second is from 5000 to 5300, or 300, and the run is from 3 to 7, or 4, so the slope is 300 / 4 = 75. Note that the 300 represents $300 and the 4 represents 4 months, so the slope represents $300 / (4 months) = $75 / month, which is the average rate of change during the first time interval.

The rise between the second point and the third is from 5300 to 5500, or 200, and the run from 7 to 12 is 5, so the slope is 200 / 5 = 40. This slope represents the $40/month average rate of change during the second time interval.

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Self-critique (if necessary):n/a

Self-critique Rating:3

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Question: `q002. Look at your results for the slopes, and look the results for the average rates of change. What do you notice? In what way then does the graph represent the average rate of change?

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Your solution: The rate of the rise is greater from point 1 to point 2 than from point 2 to point 3. The graph agrees with this. The line increases at a decreasing rate.

confidence rating #$&*::ok

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Given Solution:

`aWe see from this exampe that the slope of a graph of value vs. clock time represents the rate at which value is changing with respect to clock time.

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Self-critique (if necessary):n/a

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Self-critique Rating:3

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Question: `q003. To what extent do you think your graph, consisting of 3 points with straight line segments between them, accurately depicts the detailed behavior of the stocks over the 9-month period?

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Your solution:

I think it is mostly accurate. I think it is difficult to portray on a graph the effect of the increasing principal. I think the graph just portrays that your earnings rate is decreasing, but in reality what must be happening is that the interest rate or rate of return is decreasing because the principal is being increased by interest earned.

confidence rating #$&*:ok

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Given Solution:

`aStocks can do just about anything from day to day-they can go up or down more in a single day than their net change in a month or even a year. So based on the values several months apart we can't say anything about what happens from day to day or even from month to month. We can only say that on the average, from one time to another, the stocks changed at a certain rate.

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Self-critique (if necessary):n/a

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Self-critique Rating:3

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Question: `q004. From the given information, do you think you can accurately infer the detailed behavior of the stock values over the nine-month period?

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Your solution:

absolutely not - too many factors involved

confidence rating #$&*:ok

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Given Solution:

`aNot on a day-to-day basis, and not even on a month-to-month basis. All we can see from the given information is what might be an average trend.

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Self-critique (if necessary):n/a

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Self-critique Rating:3

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Question: `q004. From the given information, do you think you can accurately infer the detailed behavior of the stock values over the nine-month period?

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Your solution:

absolutely not - too many factors involved

confidence rating #$&*:ok

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Given Solution:

`aNot on a day-to-day basis, and not even on a month-to-month basis. All we can see from the given information is what might be an average trend.

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Self-critique (if necessary):n/a

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Self-critique Rating:3

#*&!

&#Very good responses. Let me know if you have questions. &#