Pt1420 Unit 2 Assignment

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Solution:
I am going to represent the month with x, which is the independent variable and price with y, which is a dependent variable. Therefore, in the month of January we have two points (1, 10) and (31, 12) and in the month of February, we have two points (1, 10) and (28, 9). Since the formula to calculate a slope is:
Slope (m) is (y2 - y1) / (x2 - x1)
Slope for January is m = (12 - 10) / (31 - 1) m = 2/30 m = 1/15
Slope for February is m = (9 - 10) / (28 -1) m = -1/27
Hence, we are looking for a function of the form f(x) = mx + b. To determine m and b, we use the fact that a stock price goes from $10 to $12 from January 1st to January 31, and from $12 to $9 from February 1st to February 28th.
So the equation of line for January is y = 1/15x + b or y = x/15 + b …show more content…
Hence, the price change from $10 to $9 is not a straight
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