Pregunta
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The Dow Jones average (a stock market share index) dropped from 12837 to 12503 in one week in June 2012 . a ) Calculate the drop in the share index. b) If the price continued to drop at the same rate, calculate the Dow Jones average after 4 more weeks.

Ask by Parry Burns. in South Africa
Feb 04,2025

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a) The Dow Jones average dropped by 334 points in one week. b) If the drop continues at the same rate, the Dow Jones average after 4 more weeks would be 11,167.

Solución

Let's solve the problem step by step. ### Given: - **Initial Dow Jones Average (Week 1):** 12,837 - **Final Dow Jones Average (After 1 Week):** 12,503 ### a) Calculate the drop in the share index. **Calculation:** \[ \text{Drop} = \text{Initial Average} - \text{Final Average} = 12,837 - 12,503 = 334 \] **Answer:** The Dow Jones average dropped by **334 points** in one week. --- ### b) If the price continued to drop at the same rate, calculate the Dow Jones average after 4 more weeks. **Assumption:** The index drops **334 points each week** consistently. **Calculations:** 1. **Total Drop Over 4 Weeks:** \[ \text{Total Drop} = \text{Weekly Drop} \times \text{Number of Weeks} = 334 \times 4 = 1,336 \] 2. **Dow Jones Average After 4 More Weeks:** \[ \text{New Average} = \text{Final Average After 1 Week} - \text{Total Drop} = 12,503 - 1,336 = 11,167 \] **Answer:** If the index continues to drop at the same rate, the Dow Jones average after 4 more weeks would be **11,167**. --- ### Summary: - **a)** Drop in one week: **334 points** - **b)** Dow Jones average after 4 more weeks: **11,167**

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The Deep Dive

To find the drop in the share index, subtract the final index value from the initial value: 12837 - 12503 = 334. So, the Dow Jones average dropped by 334 points. If the price continued to drop at the same rate of 334 points per week, after 4 more weeks, the drop would be 4 * 334 = 1336. Therefore, the Dow Jones average after 4 weeks would be: 12503 - 1336 = 11167. So, if it dropped consistently, the projected Dow Jones average after 4 more weeks would be 11167.

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