Mathematics for Business Decisions, Part 2Homework 1Mathematics for Business Decisions, Part 2Homework 1forMath 174 PCC - Northwest Instructor: D’AlesandroDate: Feb. 4th, 2004byTeam: We, the undersigned, maintain that each of us participated fully and equally in the completion of this assignment and that the work contained herein is original. Furthermore, we acknowledge that sanctions will be imposed jointly if any part of this work is found to violate the Student Code of Conduct, the Code of Academic Integrity, orthe policies and procedures established for this course. ______________________________ ______________________________Name (printed) Signature______________________________ ______________________________Name (printed) Signature______________________________ ______________________________Name (printed) Signature______________________________ ______________________________Name (printed) Signature1. Start with a blank Excel file and use 701 evenly spaced points to plot the graph oftetf06.0000,2)( over the interval ]12,12[. Recall that Excel uses EXP(x) for xe. This graph shows you the value of $2,000 invested at 6%, compounded continuously, for t years. When t is negative, )(tf gives the past value. When t is positive, )(tf gives the future value of the $2,000.Solution. 2. (i) Show the graphs of both 000,2060)(  xxf and xxxg  20022.0)( in the same plot, over the interval ]000,1,0[. (ii) Use your plot to estimate the two values of xfor which )()( xgxf . Solution. 3. Use Graphing.xls to plot the graph of xexxfx05.2100)(5.2/. Note that this function is the p.d.f. for an exponential random variable with parameter 5.2.Solution. 4. (i) Use the exponential model in the CPS example from the section Trend Lines to predict the case load in the year 2006. (ii) Repeat Part (i) using the linear model. Solution. 5. (i) Fit a 6th degree polynomial trend line through the data points in the CPS example from the section Trend Lines. (A plot of this data is given in Case Load.xls.) (ii) What caseload does this model predict for the year 2004?Solution. 6. The monthly closing prices of Disney stock during the first six months of 2003 are given below.January February March April May June$17.50 $17.06 $14.02 $18.66 $19.65 $19.75(i) Fit a linear trend line to the data, and use this model to predict the closing price at the end of September 2003. (ii) Fit a 2nd degree polynomial trend line to the data, and use this model to predict the closing price at the end of September 2003. (iii) Do you think that trend lines can provide a reliable way to predict stock