linear equation 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

Define value of Jamie stock as f(x)

Define value of Juwan stock as g(x)

Information given:

f(0) = 4, Or point (0,4), slope is 3

g(0) = 0 or point (0,0), slope is 4

Part A)

Slope intercept:

f(x) = 4 + 3x

y = 4+ 3x

g(x) = 4x

y= 4x

Standard:

f(x) = 3x - y = -4 (for f, subtract y from both sides, then subtract 4 from both sides.)

g(x) = 4x - y =0

Part B)

Input is time and output is value stock. The value of stock depends on the time. This is most conventional

Part C)

Domain is the value of inputs. Range is the potential outputs. Technically there are 24 hours in a day so the Domain could be 0 to 24 hours. Realistically, the domain is whatever time the Stockmarket is open in their country. The Range is y <= 4 for Jamie and y <=0 for Juwan. The upper bounds depend on what unit of time was provided. The question doesn't provide a unit of time.

Part D) The 2 equations are independent of each other so that rules out causation. The only correlation is that something happened in the market that day to make both stocks increase.