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16.5: Statistical Literacy

  • Page ID
    2184
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    Learning Objectives

    • Stock Appreciation

    Many financial web pages give you the option of using a linear or a logarithmic \(Y\)-axis. An example from Google Finance is shown below.

    stock_increase.jpg
    Figure \(\PageIndex{1}\): A web page from Google Finance

    Example \(\PageIndex{1}\): what do you think?

    To get a straight line with the linear option chosen, the price would have to go up the same amount every time period. What would result in a straight line with the logarithmic option chosen?

    Solution

    The price would have to go up the same proportion every time period. For example, go up \(0.1\%\) every day.


    This page titled 16.5: Statistical Literacy is shared under a Public Domain license and was authored, remixed, and/or curated by David Lane via source content that was edited to the style and standards of the LibreTexts platform; a detailed edit history is available upon request.

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