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.
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.