Graph A and Graph B both show the closing price (in dollars) of the stock for XYZ Corp. for eight consecutive business days from February 1 through February 10. (Both graphs show exactly the same data.) Graph A Closing price (in dollars) Graph B Closing price (in dollars) 120- 110- 100- Feb 1 Feb 2 Feb 3 Feb 4 Feb 5 Feb 8 Feb 9 Feb 10 128 126- 124- 122- (a) Explain how the daily closing price changed between February 1 and February 10. Feb 1 Feb 2 Feb 3 Feb 4 Feb 5 Feb 8 Feb 9 Feb 10 1 It fluctuated widely during that period. Overall, it decreased by from February 1 to February 10. 2 It fluctuated widely during that period. Overall, it more than doubled from February 1 to February 10. It fluctuated widely during that period. Some days it doubled and other days it halved. But overall, there was no significant increase or decrease. It fluctuated within a small range of about 10% of the starting value. Overall, there was no significant increase or decrease. (b) Approximate to the nearest whole number (in dollars) the difference between the maximum daily closing price and the minimum daily closing price. dollars (c) Which of the two graphs is more likely to be misleading? Why? (Choose the best answer.) O In Graph A, the points look to be at similar heights, suggesting that there was a dramatic increase in the closing prices. In Graph B, the points look to be at very different heights, which suggests there was a relatively small fluctuation in the closing prices. Therefore, Graph A could mislead a person into thinking that the day-to-day fluctuation in the closing prices between February 1 and February 10 was larger than it really was. ○ In Graph A, the points look to be at very different heights, which suggests there was a relatively small increase in the closing prices. In Graph B, the points look to be at similar heights, suggesting that there was a dramatic fluctuation in the closing prices. Therefore, Graph A could mislead a person into thinking that the day-to-day fluctuation in the closing prices between February 1 and February 10 was smaller than it really was. O In Graph A, the points are at heights of the same relative size as the actual closing prices. In Graph B, the differences between the closing prices are exaggerated. Therefore, Graph B could mislead a person into thinking that the day-to- day fluctuation in the closing prices between February 1 and February 10 was larger than it really was. O In Graph A, the baseline is at 0, which exaggerates the differences between the closing prices. In Graph B, the baseline is at 118 instead of 0, so the points are at heights of the same relative size as the actual closing prices. Therefore, Graph B could mislead a person into thinking that the day-to-day fluctuation in the closing prices between February 1 and February 10 was larger than it really was. x G