Multicurrency decision - Speech or Presentation Example

Multicurrency decision – statistics Executive summary Analysis of variance (ANOVA) is a statistical method used to decompose variance in a linear model that can be explained in regression make up. The paper will elaborate experimental treatment where the component sums of squares will be decomposed and statistical test calculated to describe the data to justify selection of the model (Aczel, & Sounderpandian, 2007). First the data will be decomposed into explained and unexplained variance components through regression as well as experimental context (Kontoghiorghes, et al, 2002). Finally, the data will be explained to interpret and analyze the focused trend. In this paper monthly/ weekly data of four exchange rates will be collected and used for the analysis. Introduction The paper contain the question one to question fourteen where question thirteen and fourteen the collected exchange rates will be analyzed through graphs and variance analysis. If this rates fits regression models well, then selected will include only those explanatory variables that give details a significant degree of the variance in the answerable variable. Question 1 Expectation under mean in US dollars Customers Quantity Selling price ($) Expected return Uk 12 81512.1 978145 Japan 8 78110.5 624884 France1 2 80340 160680 France2 3 80752 242256 S/Africa 2 84716.5 169433 217539 Question2 Y=X1+X2+X3+X4 Hence i find the Mean, μ=2,175,398.058 Variation,σ2 =2,100,663,074.5314 Std deviation σ=45832.991 Z value = X-µ/ℓ→(2,250,000-2,175,398)/45,832.991 Reading from z table P(Y>$2,250,000) →0.5-0.4474=0.05180 Question3 Z value = X-µ/ℓ→(2,500,000-2,175,398)/45,832.991→7.08823= P(Y>$2,500,000) = 0.5 Quetion4 The p that revenue is less than $$2,150,000 Z value = X-µ/ℓ→(2,150,000-2,175,398)/45,832.991→ Reading from z table P(Y>$2,150,00) = 0.28974 Question5 Z value = X-µ/ℓ→(2,000,000-2175398)/45832.991 -2.2543 Reading from z table p- value 0.4878 which fall on the left hand side of the distribution. 0.5-(2.25435)=2.75435→ 2.75435 I would suggest that it is more prudent and viable to reject the offer, because there is a 71% probability to earn the amount of profit rather than the banks offer. Question6 HSBCS offer for payment of $2,150,000 in return of revenue in local currency is a good offer because it gives Corvette an average return. In addition Corvette would directly change the types of liabilities and assets it holds, to enter into financial contracts and shift some of the IRR they have to other Companies or investors who are better capable to manage them Question7 The Corvettes the sales manager is more risk averse because he is more opposing the risk because the future is uncertain and unpredictable with random occurrence therefore the known should be accepted. And if fluctuation happens further in exchange rates and the Company may loose a lot. Question8 Management dead-lock: Like in the case of disagreement on whether to accept the HSBC offer, this may causes the Company to loose business. The bank describes its value at risk as the loss that happens at the 5th percentile of the unsure inflow. Regulatory bodies repeatedly make use of a slightly more complex adaptation of gap analysis to approximation the level of IRR banking institutions and for the whole banking industry. Question 9 The idea that money available at the three months time is more worthier than the same amount due in the future to its potential earning capacity. This chief principle of finance maintains that, if interest can be earned then the sooner money is received the worthier it becomes. Question10 Z value = X-µ/ℓ→ (2150000-2175398)/45832.991 P (bank will incur loss) = P (the previous loss) = P(Y Read More