jlopez113
jlopez113
20.09.2020 • 
Mathematics

A small technology company started offering shares of stock to investors in 1987. At that time, the price of one share of stock was $0.39. Since then, the company has experienced rapid growth. Twenty-two years later, the price of a single share of stock has risen to over $110. The scatterplot shows the number of years since the initial stock offering in 1987 and the price of the stock. Based on the scatterplot and residual plot, is a linear model appropriate for the growth of stock price? A linear model is appropriate because the regression line fits the scatterplot well. A linear model is not appropriate because the residual plot is centered about zero. A linear model is not appropriate because the residual plot shows a clear pattern. A linear model is not appropriate because the scatterplot shows a clear pattern.

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