Video Module Simulation
Linear Models - Jedi
The Investment Banker's Problem

The price of company ABC stock was $210 per share Tuesday
of this week, was $235 per share on Wednesday of this week and 
$265 per share on Thursday of this week. If the rise in stock price 
each day for this week follows approximately a linear model, 
What was the price per share on Monday and Friday of this week?
If the price per stock is expected to fall on Monday of next week
at the same average among as when it was rising this week, what will be the expected price per share on Wednesday of next week?. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Good! you know where to look for guidance. Having the Force with you and  being the Force are two different things.

1. Find the best linear line or model and estimate its equation.

2. Predict the future based on this model.

3. Be aware of errors and risk of estimating linear models.

4. Examine other factors that may affect your predictions.

5. Are you willing to invest your own money using this crude model you just build? If yes how much?