Over a period of one week, the Dow Jones Industrial Average (DJIA) did the following: On Monday the DJIA went up by 3.1%, on Tuesday it went down by 4.8%, on Wednesday it went down by 1.7%, on Thursday it went down by 0.5%, and on Friday it went up by 10.3%.
a. What is the one-week growth (or decline) factor? What was the overall percentage increase/decrease of the DJIA over the week? Round your answer to the nearest tenth of a percentage point.
b. Look again at the answer to part a of this question. What is wrong with the following argument: “We can find the overall percentage increase/decrease by computing 3.1% – 4.8% – 1.7% – 0.5% + 10.3% = 6.4%”?
Increasing by 3.1% is equivalent to being multiplied by 1 + [1.931 = 1.[131Decreasing by 111.8% is equivalent to being tnnh’ipiied b}; 1 — [1.91113 2 [1.952Decreasing by 1.?% is equivalent to…