Arithmetic Mean and Exchange Rate Effect

In table 5-1, a z-score of 3.5 is corresponds to 99.98% as normal and healthy adults,

At 50, the z-value is -60/29.39=-2.04 The probability that z is less than this number is .0207. Since the probability of being less than 120 was implied in part d of being .6331, the probability of landing between the two is the difference: .6124.

The critical value of probability is 0.05. The critical value at ‘4’ degrees of freedom with probability ‘0.05’ is 2.776.

We are using the third currency pair i.e. GBP/USD for the conduct of the study and the appreciation / Depreciation of these currencies over the

In table 1.1 with the sample size of 50, the mean is calculated to be 6.72, the standard deviation (SD) from the mean is 2.20 and the average deviation from the sample mean within this population also known as the standard error (SE) is 0.31 (Loiselle, Profetto-Mcrath, Polit & Beck, 2011). Within the sample, the average deviation from the mean is the standard deviation (Loiselle et al., 2011). Therefore, 95% of scores within this sample will be between -2SD which is a value of 2.32 and +2SD which is a value of

The z- score for 99% confidence is z = 2.576 The 99 percent confidence interval for the proportion of applicants that fail the test is given by (p – z*SE, p – z*SE) = (0.035 - 2.576 * 0.0092, 0.035 + 2.576 * 0.0092) = (0.035 – 0.0237, 0.035 + 0.0237) = (0.0113, 0.0587)   = (1.13%, 5.87%)

from the z tables we see that the probability that z is less than -0.77 is .2206, so the probability that x is GREATER than 60 is 1-.2206 = .7794.

4. Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Last month, a HK$ =

This sounds a little like guesswork and gambling, but there is more to it than what appears on the surface. The exchange rates are set by government agencies in each country. In the United States, most of us have become accustomed to waiting for word from Alan Greenspan about changes in

For a normal probability distribution, is about 95 percent of the area under normal curve within plus and minus two standard deviations of the mean and

One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S. has been 4% greater than that in Canada. Based on the theory of Relative PPP, the current spot exchange rate of U.S. dollars for Canadian dollars should be approximately ________.

The average return is 5.8 percent, with a standard deviation of 9.2 percent, so Prob( Return < –3.4 or Return > 15.0 ) ≈ 1/3, but we are only interested in one tail; Prob( Return < –3.4) ≈ 1/6, which is half of 1/3 .

We will first determine the weekly Exchange rate between U.S. and Japan in the form of Yen/Dollar for the span of 6 years, December 1999 till December 2005.

The exchange rate is the price of a nation’s currency in terms of another currency. The domestic currency and the foreign currency are the two components of an exchange rate. In a direct quotation, the price of the foreign currency is expressed in terms of the domestic currency and the vise versa is the indirect currency. Most exchange rates use the US dollar as their base currency and other currencies as the counter currency. There a few exceptions, the Euro and commonwealth currencies such as the Australian dollar, the British pound and the New Zealand dollar (Investopedia, LLC., 2014).

The value of currency within a given country holds a different value to the currency of another country. The values of currency are determined by an exchange rate. In quoting the exchange rate two methods can be used; the indirect and direct. The indirect method quotes one unit of the local currency in units of foreign currency whereas the direct method quotes foreign currency in units of local currency (SAP Solutions, 2015). Obtaining exchange rates to compare the United States Dollar (USD) to other currencies is best completed using the direct exchange rate to provide consistent data and reporting.