A popular social media platform has begun offering stock shares to the public. In the past 2 years, the price of the stock has generally increased. An investment specialist gathers data on the stock price over the past 2 years and proppses two models for estimating the growth of the steck, as shown in the scatterplots. Based on the scatterplots, which type of model is most suitable for estimating the stock price? O A power model is suitable because the scatterplc of log(weeks) against log(stock price) shows a curved relationship. O A linear model is suitable because the scatterplot of weeks against log(stock price) shows a strong linear relationship. log(Stock Price) vs. Weeks 2.28 O An exponential model is suitable because the scatterplot of log(weeks) against log(stock price) shows a curved relationship. 2.26 2.24 2.22 2.2 P 2.18 O An exponential model is suitable because the scatterplot of weeks against log(stock price) shows a strong linear relationship. 2.16 2.14 2.12 21 2.08 log(Stock Price)

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 6E
icon
Related questions
Question
100%
A popular social media platform has begun offering
stock shares to the public. In the past 2 years, the
price of the stock has generally increased. An
investment specialist gathers data on the stock price
over the past 2 years and proppses two models for
estimating the growth of the steck, as shown in the
scatterplots.
Based on the scatterplots, which type of model is
most suitable for estimating the stock price?
O A power model is suitable because the scatterplot
of log(weeks) against log(stock price) shows a
curved relationship.
O A linear model is suitable because the scatterplot
of weeks against log(stock price) shows a strong
linear relationship.
log(Stock Price) vs. Weeks
O An exponential model is suitable because the
scatterplot of log(weeks) against log(stock price)
shows a curved relationship.
2.28
2.26
2.24
222
2.2
2.18
2.16
2.14
212
O An exponential model is suitable because the
scatterplot of weeks against log(stock price) shows
a strong linear relationship.
2.1
2.08
206
log(Stock Price)
Transcribed Image Text:A popular social media platform has begun offering stock shares to the public. In the past 2 years, the price of the stock has generally increased. An investment specialist gathers data on the stock price over the past 2 years and proppses two models for estimating the growth of the steck, as shown in the scatterplots. Based on the scatterplots, which type of model is most suitable for estimating the stock price? O A power model is suitable because the scatterplot of log(weeks) against log(stock price) shows a curved relationship. O A linear model is suitable because the scatterplot of weeks against log(stock price) shows a strong linear relationship. log(Stock Price) vs. Weeks O An exponential model is suitable because the scatterplot of log(weeks) against log(stock price) shows a curved relationship. 2.28 2.26 2.24 222 2.2 2.18 2.16 2.14 212 O An exponential model is suitable because the scatterplot of weeks against log(stock price) shows a strong linear relationship. 2.1 2.08 206 log(Stock Price)
log(Stock Price) vs. log(Weeks)
2.28
2.26
2.24
2.22
22
2.18
2.16
2.14
2.12
21
2.08
2.06
2.04
0.5
1.
1.5
12,
log(Weeks)
log(Stock Price)
Transcribed Image Text:log(Stock Price) vs. log(Weeks) 2.28 2.26 2.24 2.22 22 2.18 2.16 2.14 2.12 21 2.08 2.06 2.04 0.5 1. 1.5 12, log(Weeks) log(Stock Price)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Time Series Analyses, Forecasting Methods, and Indices
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning