Chapter ISG, Problem 3.3.5P

To determine

To calculate the stock prices at 2, 4 and 6

Answer to Problem 3.3.5P

The difference between the functions at equal interval is same, -1.84

The rate of change is negative, hence, the price is decreasing.

Explanation of Solution

Given information: The equation is,

  $y=-0.92x+2.9$

Where y is the price and x is the stock

Formula used: solving function.

Calculation:

For x=2,

Substituting the values in the function,

  $y=(-0.92\times 2)+2.9$

On solving,

  $y=1.09$

For x=4,

  $y=(-0.92\times 4)+2.9$

On solving,

  $y=-0.78$

For x=6

  $y=(-0.92\times 6)+2.9$

On solving,

  $y=-2.62$

The difference between the functions at equal interval is same, -1.84

The rate of change is negative, hence, the price is decreasing.