The new value of Stock \( S \) is modelled by the equation: \[ s_{2}:[0, \infty) \rightarrow \mathbb{R}, s_{2}(t)=a t+3 \] Where, \( a \in \mathbb{R} \). b. Determine all possible value(s) of \( a \)
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To ensure that the function \( s_2(t) = at + 3 \) represents a valid stock value, we must take into consideration that stock prices are generally non-negative. This implies: 1. For \( t = 0 \): \[ s_2(0) = a \cdot 0 + 3 = 3 \] This is already non-negative. 2. For \( t > 0 \): We have \( s_2(t) = at + 3 \). For this to remain non-negative for all \( t \geq 0 \), the slope \( a \) must be such that \( at + 3 \geq 0 \). If \( a < 0 \), as \( t \) increases, \( at \) would become more negative, and there will be a point where \( s_2(t) < 0 \). This scenario violates the condition of non-negativity. Thus, \( a \) must be non-negative. Therefore, the possible value(s) of \( a \) are: \[ a \geq 0 \]