18. Over a period of one week, the Dow Jones Industrial Aver- age (DJIA) did the following: On Monday the DJIA went down by 3.2%, on Tuesday it went up by 11.2%, on Wednes- day it went up by 0.7%, on Thursday it went down by 4.8%, and on Friday it went down by 9.4%. What was the percent- age increase/decrease of the DJIA over the week? Round your answer to the nearest tenth of a percentage point. 00 110.000
18. Over a period of one week, the Dow Jones Industrial Aver- age (DJIA) did the following: On Monday the DJIA went down by 3.2%, on Tuesday it went up by 11.2%, on Wednes- day it went up by 0.7%, on Thursday it went down by 4.8%, and on Friday it went down by 9.4%. What was the percent- age increase/decrease of the DJIA over the week? Round your answer to the nearest tenth of a percentage point. 00 110.000
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:**Question 18: Analysis of DJIA Percentage Changes Over a One-Week Period**
Over a period of one week, the Dow Jones Industrial Average (DJIA) exhibited the following percentage changes:
- **Monday**: The DJIA decreased by 3.2%.
- **Tuesday**: The DJIA increased by 11.2%.
- **Wednesday**: The DJIA increased by 0.7%.
- **Thursday**: The DJIA decreased by 4.8%.
- **Friday**: The DJIA decreased by 9.4%.
**Problem Statement:**
Calculate the overall percentage change (increase or decrease) of the DJIA over the entire week. Round your answer to the nearest tenth of a percentage point.
This exercise involves understanding the cumulative impact of daily changes on a financial index. To find the weekly percentage change, one needs to consider the compounded effect of each day's change rather than summing them directly.
**Mathematical Approach:**
1. Start with an initial value (assume 100 for simplicity).
2. Apply each daily percentage change consecutively to this initial value.
3. Determine the final value after all changes.
4. Calculate the overall percentage change based on the initial and final values.
This problem helps in understanding how percentage changes can compound over multiple periods, a crucial concept in finance and investments.
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