From its past behavior, John knows that the value of a stock has a cyclical component that increases for the first three months of each year, falls for the next six, and rises again for the last...


From its past behavior, John knows that the value of a stock has a cyclical component that<br>increases for the first three months of each year, falls for the next six, and rises again for<br>the last three. In addition, inflation adds a linear component to the stock's price. John is<br>seeking a model of the form<br>f(t) = mt + b + A sin<br>with t in months since Jan 1. He has the following data in the table:<br>Jan 1 Apr 1 Jul 1<br>Price $20.00 $37.50 $35.00 $32.50 $50.00<br>Date<br>Oct 1<br>Jan 1<br>a) What is the length of the period in his model?<br>b) Determine two months when the Price is on the slanted midline.<br>c) Find value of m, b, and A so that f fits the data.<br>

Extracted text: From its past behavior, John knows that the value of a stock has a cyclical component that increases for the first three months of each year, falls for the next six, and rises again for the last three. In addition, inflation adds a linear component to the stock's price. John is seeking a model of the form f(t) = mt + b + A sin with t in months since Jan 1. He has the following data in the table: Jan 1 Apr 1 Jul 1 Price $20.00 $37.50 $35.00 $32.50 $50.00 Date Oct 1 Jan 1 a) What is the length of the period in his model? b) Determine two months when the Price is on the slanted midline. c) Find value of m, b, and A so that f fits the data.

Jun 02, 2022
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