# 16.5: Statistical Literacy

Skills to Develop

• 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.

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.

### Contributor

• Online Statistics Education: A Multimedia Course of Study (http://onlinestatbook.com/). Project Leader: David M. Lane, Rice University.