Question

(a)

The price of a single issue of stock can fluctuate throughout the day.

A linear equation that represents the price of stock for Shipment Express is y = 15 – 1.5x, where x is the number of hours passed in an eight-hour day of trading.



Part A

What is the slope of the linear equation? What does it mean in this context?

Math


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(b)

Part B

What is the y-intercept of the linear equation? What does it mean in this context?

Math

Answer 1

(a) Slope = -1.5.
Meaning: the stock price changes at -$1.50 per hour — it decreases by $1.50 for each hour that passes.

(b) y‑intercept = 15.
Meaning: at x = 0 (the start of the trading day) the stock price is $15 per share (point (0, 15)).