Suppose One Year Ago,Hein Company Had Inventory in Britain Valued

question 11

Multiple Choice

Suppose one year ago,Hein Company had inventory in Britain valued at 240,000 pounds.The exchange rate for dollars to pounds was 1£ = 2.00 U.S.dollars.This year the exchange rate is 1£ = 1.82 U.S.dollars.The inventory in Britain is still valued at 240,000 pounds.What is the U.S.dollar gain or loss in inventory value as a result of the change in exchange rates?

• A) -$43,200.00
• B) -$48,816.00
• C) -$36,288.00
• D) -$50,544.00
• E) -$32,400.00

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Definitions:

Empirical Rule

A statistical norm indicating that in a normal distribution, the vast majority of data points lie within a range of three standard deviations from the mean.

Tchebysheff's Theorem

A theorem that provides a minimum bound on the proportion of values that lie within a certain number of standard deviations from the mean for any distribution.

Empirical Rule

The rule in statistics where for any normal distribution, practically all of the data is expected to be within three standard deviations from the mean value.

Empirical Rule

A statistical principle that asserts in a normal distribution, almost all data points are contained within three standard deviations from the average.