(Situation K) Foreign Exchange Rates, the Values of Foreign Currency

question 32

Essay

(Situation K) Foreign Exchange rates, the values of foreign currency in U.S. dollars, are important to investors and international travelers. The table lists the monthly foreign exchange rates of the British pound (in U.S. dollars per pound) for a certain year.
$$\begin{array} { l l } \underline {\text { Month }} & \underline { \text { Exchange Rate } } \\\text { January } & 1.13 \\\text { February } & 1.10 \\\text { March } & 1.13 \\\text { April } & 1.23 \\\text { May } & 1.25 \\\text { June } & 1.28 \\\text { July } & 1.38 \\\text { August } & 1.39 \\\text { September } & 1.36 \\\text { October } & 1.42 \\\text { November } & 1.44 \\\text { December } & 1.44\end{array}$$
-Consider the table below which displays the price of a commodity for six consecutive
years.

$\begin{array}{c|c}\hline \text { Year } & \text { Price } \\\hline 1 & 250 \\\hline 2 & 255 \\\hline 3 & 253 \\\hline 4 & 255 \\\hline 5 & 259 \\\hline 6 & 261 \\\hline\end{array}$

a. $\text { Use the method of least squares to fit the model } E\left(Y_{t}\right)=\beta_{0}+\beta_{1} t \text { to the data. Write the }$ prediction equation.

b. Calculate the residuals and construct a residual plot.
c. Calculate the Durbin Watson d statistic.

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Definitions:

Positive Organizational

Pertaining to practices or attitudes within an organization that contribute to a constructive and productive work environment.

Annual Retreat

is a planned event, typically occurring once a year, where members of an organization or group withdraw from daily activities to focus on reflection, strategy, or team-building.

High Producing Talent

Individuals within an organization who have exceptionally high output, often exceeding performance expectations.

Mercenary Organizational Culture

A type of corporate culture characterized by a focus on financial rewards, resulting in a competitive and individualistic environment.