UoPeople Math Discussion Forum Unit 2 PDF

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UoPeople Math 1201 Discussion Forum answers, plus graph and work provided for the equations given....

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DISCUSSION FORUM 2 Lines can be used to approximate a wide variety of functions; often a function can be described using many lines. If a stock price goes from $10 to $12 from January 1st to January 31, from $12 to $9 from February 1st to February 28th, and from $9 to $15 from March 1st to March 31th is the price change from $10 to $15 a straight line? It is clear that in each of the three time intervals mentioned there was a complex daily variation of prices as in an electrocardiogram. But what would be a simplified solution for a first naive view of the situation? Would a simple function hold up? What is the simplest function to represent this situation? Does your naïve initial and simplified model allow you to predict the behavior of the stock in the next month? How can I use three “pieces” of lines to describe the price movements from the beginning of January to the end of March? Show the graph for the price movement. Go to www.desmos.com/calculator, and write your equations following the example y=x+2

{0 < x < 2}

y = –x + 6 {2 < x < 5} y = 2x – 9 {5 < x < 8}

Your Discussion should be a minimum of 250 words in length and not more than 750 words.

Hello class,

To figure out the solutions to the questions, I can use the linear equation formula to solve for them; y=mx+b

m=(y2-y1) (x2-x1)

One of the ways to represent a linear function is in tabular form, which is to make a table to show the relationship between the months and stock prices.

To represent each month and stock prices, my chart looks like this: (The x’s are the months and the y’s represent the prices) Jan 1 $10

Feb 1 $12

Mar 1 $9

Jan 31 $12

Feb 28 $9

Mar 31 $15

For the equation portion, I will plug it in as:

y= (1/15)x+b where I substituted b with one of the 2 points into the equation (0,10):

10= (1/15) (0) +b 10= b

*since anything times by 0 will equal 0* The first equation solved will be y= (1/15)x+10

Then for the next portion, y=mx+b and using the points (31,12) and (58,9) = (9-12)/(58-31) = =3/27 = -1/9 = (-1/9)x+b

I substituted one of the 2 points within the equation (31,12): So, it will now be: 12= (-1/9) (31) +b 12= (-31/9) +b

b= 139/9 So, one of the equations for the months and prices is =(-1/9) x + (139/9) For the last portion of the table, I substituted one of the 2 points into the equation and used (90,15): 15= (6/31) (90) +b 15-(540/31)+b b= -75/31

The third equation for the table is =(6/31)x-(75/31)

As you can see, the prices from month to month do not go in a straight line, it looks like a zig zag.

I do not think that this can be used to predict the rise or fall of stock prices but if it were used to predict those specific 3 months in the data, then it could have predicted the stock market in 3 months, but it is not accurate. As for the months and prices, they were simplified by with linear functions but it is difficult to accurately predict each stock prices per month....