Consider the graph of r(t), the rate of change in the price of a technology stock, during the first 55 days of trading of 2003. Using the information present below, find the graph of the accumulation function starting at day 16.

Question

Quizplus · Accepted Answer

To find the accumulation function, we need to integrate the rate of change function. We can start the integration from day 16, the initial value of the accumulation function should be 0 on day 16.
Therefore, the accumulation function F(t) starting from day 16 can be found by:
F(t) = ∫r(t) dt from t=16 to t=t
By using the given graph of r(t), we can see that r(t) is a constant function with a rate of change of -0.06 on day 16 and an increasing rate of change for the rest of the time period. Therefore, the graph of F(t) will be a straight line with a negative slope on day 16 and gradually increasing slope for the rest of the time period. The intercept of the line with the horizontal axis will be 0 on day 16.

Out of the given choices, only choice C fits this description.

Consider the Graph of R(t), the Rate of Change in the Price