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Discussion Forum Unit 02: Graphs, Linear and Quadratic Functions

University of the People

MATH 1201 - 01 College Algebra

Gideon Effiong, Instructor

February 06th, 2022

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Lines can be used to approximate a wide variety of functions; often a function can be described using
many lines.

If a stock price goes from $10 to $12 from January 1st to January 31, from $12 to $9 from February
1st to February 28th, and from $9 to $15 from March 1st to March 31st is the price change from $10 to
$15 a straight line? 

It is clear that in each of the three-time intervals mentioned there was a complex daily variation of prices
as in an electrocardiogram. But what would be a simplified solution for a first naive view of the situation?
Would a simple function hold up? What is the simplest function to represent this situation? Does your
naïve initial and simplified model allow you to predict the behavior of the stock in the next month?

How can I use three “pieces” of lines to describe the price movements from the beginning of January to
the end of March? Show the graph for the price movement.

There are several ways of representing a linear function, including word form, function notation, tubular
form, and graphical form. Abramson (2017) defines a linear equation as an algebraic where each term has
an exponent of 1and when the equation is graphed, it always results in a straight line formulated as y=
mx+b and a function notation f(x)=mx+b (pg. 179).

Solutions

Getting to understand the concept to follow, lays a better understanding of how to tackle the question,
let’s start below; -breaking down the period and the change incurred in costs as per the question.

Period (x) Jan-01 Jan-31 Feb-01 Feb-28 Mar-01 Mar-31

Stock Price
$ 10.00 $ 12.00 $ 12.00 $ 9.00 $ 9.00 $ 15.00
(y)
For this case the months or rather period is represented x and stock cost by the y-axis, we understand that
stock prices have been changing successively in 3 months, that is Jan, Feb & march so the best option is,
x-axis to be expressed as a daily variation graph other than monthly so that to simplify the function.

For January period our equation will be as below

y=mx + b,

y = (12-10) x + b (10)

y = 2x + 10

Domain will be y=2x+10 {0 ≤ x ≤ 1}

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for February period our equation will be as below

y= mx + b,

y=-3x + b therefore y = 12, and x = 1 (as we use a daily variation graph)

12 =-3(1) + b

= 12 + 3 = b

b = 15 meaning that y= -3x +15

Domain will y=-3x + 15 {1 ≤ x ≤ 2}

For the period of March our equation will be as below

y = mx+ b

m =6 /1 = 6

y = 6x + b when, y = 9 and x = 2

so, 9 = 6(2) + b

9 = 12 + b

9 – 12 = b, that means b = -3

Domain will be y = 6x -3 {2 ≤ x ≤ 3}

a. f(x)=2x+10 if {0 ≤ x ≤ 1}

b. f(x)= -3x+15 if {1 ≤ x ≤ 2}

c. f(x)= 6x-3 if {2 ≤ x ≤ 3}

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Let’s find the equation for what would be a simplified solution for a first naive view of the situation.
y=mx+b
whereby m is equal change in y-axis over the change in x-axis
m= (y-y1) ÷ (x-x1), therefore (0,10) (3,15)
m= (15-10) ÷ (3-0) = (5/3) = 5
y = (5/3) x + b
if y= 15, x = 3
15 = (5/3) *3 + b
15= 5 + b
15-5 = b, which gives us b = 10

So simplified solution will be, y = 5/3 + 10{0 ≤ x}

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As per the above graph, it allows one to predict a rise in the stock price in the upcoming periods or rather
months, due to the straight-line passing through, theoretically, it makes sense but is practically not
possible

Reference:

Abramson, J. (2017). Algebra and trigonometry. OpenStax, TX; Rice University. Retrieved, from

https://openstax.org/details/books/algebra-and-trigonometry

Discussion Forum