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A particular company's stock prices vary with the market and with the company's type of business, and can be very unpredictable, but people often
A particular company's stock prices vary with the market and with the company's type of business, and can be very unpredictable, but people often try to look for mathematical patterns where they may not belong. Corning is a materials- engineering company located in upstate New York. Below is a table of the price of Corning stock on August 3, for every 5 years from 1981 to 2001. Assume that the price follows a power law: price (in $) Br where r is expressed in years. a) Price (dollars) 2.10 4.19 9.14 10.82 16.85 b) Years since 1980 6 " 16 21 Make a log-log plot of the data, and then use it to evaluate the constants B and C. B=S C- According to the power law, what should the price of Corning stock have been on August 3, 2000? (It was actually $82.83!)
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