The daily closing prices for a company's stock during one week are shown in the table. (TABLE CA

The daily closing prices for a company's stock during one...

Key Concepts

Time Series Data

Time series data refers to a sequence of data points collected or recorded at successive time intervals. In this context, daily closing stock prices form a time series that reflects how the stock's value changes over time.

Difference Calculation

Difference calculation involves subtracting one value from another, especially the current value minus the previous value in a sequence. This arithmetic operation helps in determining the change or variation between consecutive data points.

Stock Price Analysis

Stock price analysis involves examining historical price data to assess the performance and volatility of a stock. Calculating daily changes by determining the difference from the previous trading day is a fundamental step in this analysis, as it provides insights into market trends and potential investment opportunities.

Transcript

00:01 So here's the closing prices for a stock on different days of november 3rd, november 4th, november 5th, and so on and so forth.

00:08 They want to know the change from day to day.

00:11 So all you got to do is that the first one is there's no previous day, so that is the change is just a null factor, right? we don't know what the previous day was.

00:19 For the next one, you're just going to do the 114 price at the end of the day.

00:25 They're going to take away from that the 113 price at the end of the day.

00:28 So what you'll notice is that you're taking away a larger value.

00:32 So this is actually going to be a negative result, right? so remember, when you're subtracting integers, right? this is a positive takeaway of the positive.

00:41 You can always rewrite it using the additive inverse.

00:44 So that's the same thing as if you were to be doing 30 .59 plus the opposite of 33 .3, which is negative 33 .3.

00:55 And remember when you're adding integers, if you're adding a larger negative than you add a positive, you're going to end up with a negative answer, right? so when the sign's different, you're going to find the difference.

01:05 And we know that they're going to keep the sign of the absolute value that's greater.

01:09 So that means we're going to have a negative answer here.

01:11 And we're just going to find the difference between 33 .3 and 30 .59.

01:15 And just the interest of time here, let's use a calculator.

01:18 So 33 .3 take away 30 .59.

01:23 Because when the signs are different, you find the difference.

01:25 And that's a difference of 2 .71.

01:28 So this would be a negative 2 .71 change.

01:33 Then from the previous day, we can go to the next day and do that whole process again.

01:39 So in this process is going to be exactly the same.

01:42 So let me just show it to you one more time.

01:44 You're going to take the 115 price, which is 31 .04.

01:47 You're going to then subtract the 114 price, which is 30 .59.

01:53 This time, the 115 price is higher than the 114 price.

01:58 So instead of getting a negative, you're going to have a positive difference.

02:01 So this is like when you're in third grade, right? five takeaway three is two, right? so this number is bigger, this number is smaller, so you're going to have to get a positive answer.

02:10 So here you can just do 31 .04 and you're going to take away from that 30 .59.

02:17 And i'll just do this one out by hand...

Please give Ace some feedback