Algebra 2 help

Question

Juwan and his friend Jamie are watching their favorite tech penny stocks in the stock market. The initial value of Jamie’s stock was $4.00, while Juwan’s stock’s initial value was $0.00. Because of some incredible turns in the market this morning, the stocks are now increasing in value. Every time Juwan’s stock rises by $4.00, Jamie’s stock increases by $3.00. If these stock gains remain constant throughout the day, perform the following:

a. Convert this scenario into two linear equations; show both the standard form and the slope-intercept form for both equations.
b. Explain how you decided to label the axes.
c. What are the realistic bounds for the domain and range of today’s stock gains? Explain your answer.
d. Does this scenario imply correlation or causation? Explain your answer.

Answer 1

SOLUTION STEPS:

Question (a) Is asking to create an equation for Juwan’s stock and an equation for Jamie’s stock

in Slope-Intercept form                                             and in Standard form

y=mx+b                                                       Ax+By=C

To build the equations we need to understand the information given in the scenario:

Juwan’s stock starts at $0.00, Jamie’s Stock starts at a base of $4

every time Juwan’s stock rises by $4.00, Jamie’s stock increases by $3.00

Question (b): To write these equations, we first need to identify the independent variable (x) and the dependent variable (y)

·       X=The number of times the stock increases

·       Y =The total value of the stock in $

So, we can label x axis= units growth and the y-axis= stock value in $

Jwan’s equation

Slope-Intercept Form   m=4 and b=0       y=mx+b       y=4x+0  simplify to  y=4x

Standard Form                                          Ax + By = C                           -4x+y=0

Jamie’s equation

Slope-Intercept Form   m=3 and b=4      y=mx+b                                      y=3x+4  

Standard Form                                        Ax + By = C                               -3x+y=4

Question (c)  Realistic Bounds

Domain (x)        x ≥ 0

Range (y)           Jwan y≥0       Jamie y≥4

Question (d) Correlation VS Causation

The stocks are correlated positively (they grow at same time) but the increase of one stock does NOT CAUSE an increase in the other stock