Question 295093: From April to December 2000, the stock price of QRS Company had a roller coaster ride. The chart below indicates the price of the stock at the beginning of each month during the period. Find the monthly average rate of change in price between June and September.
Month Price
April (x-1) 114
May 108
June 87
July 100
August 95
September 112
October 93
November 86
December 64
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! The average stock price between June and September is as shown below:
June 87
July 100
August 95
September 112
the monthly average rate of change between June and September would be:
112 - 87 / 3 = 8.3333333 = 8 and 1/3.
You start in June with 87
by July, the price would be 95 and 1/3.
By August, the price would be 103 and 2/3.
By September, the price would be 111 and 3/3 which is the same as 112.
The average change in price would be 8 and 1/3.
You can also look at it another way.
The change in price between June and July is equal to 100 - 87 = 13.
The change in price between July and August is equal to 95 - 100 = -5.
The change in price between August and September is equal to 112 - 95 = 17
The overall average change is (13 - 5 + 17) / 3 = 25 / 3 = 8 and 1/3.
The only thing that can throw this off is what they meant by "between June and September".
We went from beginning of June to beginning of September.
If they had wanted to include the whole month of September, then we would have needed to go from the beginning of June to the end of September.
Since the end of September is the same as the beginning of October, then we would have had to go from the beginning of June to the beginning of October.
In that case, We would have had 4 numbers to average out rather than 3.
I'm assuming you want from the beginning of June to the beginning of September and that's the answer I gave you.
Most likely that's the answer they are looking for.
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