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: Date Jan 1 Apr 1 Price $20.00 $37.50 $35.00 $32.50 $50.00 Jul 1 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.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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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
Oct 1
Jan 1
Date
Jul 1
Price $20.00 $37.50 $35.00 $32.50 $50.00
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 ofm, b, and A so that f fits the data.
Transcribed Image 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 Oct 1 Jan 1 Date Jul 1 Price $20.00 $37.50 $35.00 $32.50 $50.00 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 ofm, b, and A so that f fits the data.
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