A popular social media platform has begun offering stock shares to the public. In the past 2 years, the price of the stock has generally increased. An investment specialist gathers data on the stock price over the past 2 years and proposes two models for estimating the growth of the stock, as shown in the scatterplots.
Answer
A
A power model is suitable because the scatterplot of log(weeks) against log(stock price) shows a curved relationship.
B
A linear model is suitable because the scatterplot of weeks against log(stock price) shows a strong linear relationship.
C
An exponential model is suitable because the scatterplot of log(weeks) against log(stock price) shows a curved relationship.
D
An exponential model is suitable because the scatterplot of weeks against log(stock price) shows a strong linear relationship.