Results 1 to 4 of 4

Thread: Interpreting graph

  1. #1
    Senior Member
    Joined
    Mar 2017
    From
    Toronto
    Posts
    292
    Thanks
    2

    Question Interpreting graph

    Hi,

    I'm hoping that someone can provide some input on the following description:

    Attachment 38025

    Maybe I'm interpreting the information incorrectly, but I can't help but think that this information is conflicting. When I graph R(t), I get a function that plummets immediately, as opposed to rise in value like what the description says. It would be great to get some insight on what other think of this.

    - olivia
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Nov 2010
    Posts
    2,971
    Thanks
    1141

    Re: Interpreting graph

    The attachment is invalid. Please try adding it again.
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Senior Member
    Joined
    Mar 2017
    From
    Toronto
    Posts
    292
    Thanks
    2

    Re: Interpreting graph

    Sorry about that.... here it is Interpreting graph-screen-shot-2017-08-25-9.51.41-am.png
    Follow Math Help Forum on Facebook and Google+

  4. #4
    MHF Contributor
    Joined
    Nov 2010
    Posts
    2,971
    Thanks
    1141

    Re: Interpreting graph

    I am not sure I understand what the function means. It is an overvaluation as a percent of what? Is it the actual value minus the selling price divided by the actual value? So, $\dfrac{a-s}{a}$? Because then, the higher the selling price gets, the lower the overvaluation percentage gets. At the 4 month mark, the stock starts selling for what it is actually worth, then after that, the stock actually becomes more valuable than what it sells for (causing the overvaluation percentage to increase).

    But, again, I don't understand what the function is supposed to represent, so I am giving an example of how it may be interpreted to give the immediate results. The fact that as the months go on, it increases to infinite overvaluation does not make sense to me. I really do not understand what that formula is supposed to represent. Chances are, somewhere in the chapter, it tells you what "overvaluation" is supposed to represent, and in that context, the formula may make sense.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Help interpreting these solutions
    Posted in the Calculus Forum
    Replies: 2
    Last Post: Sep 7th 2013, 10:11 AM
  2. Replies: 2
    Last Post: Aug 11th 2012, 08:18 PM
  3. interpreting a function
    Posted in the Algebra Forum
    Replies: 1
    Last Post: May 18th 2010, 09:12 PM
  4. interpreting the graph of the derivative
    Posted in the Calculus Forum
    Replies: 6
    Last Post: Nov 26th 2007, 10:04 AM
  5. Interpreting Dif EQ
    Posted in the Calculus Forum
    Replies: 0
    Last Post: Nov 14th 2007, 06:32 PM

Search Tags


/mathhelpforum @mathhelpforum