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.
Based on the scatterplots, which type of model is
most suitable for estimating the stock price?
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.
