To Minimize the Risk of an Unanticipated Change in Exchange

question 29

True/False

To minimize the risk of an unanticipated change in exchange rates, a company can protect itself by entering into a forward exchange contract.

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Definitions:

Independently

Without being influenced by others or by external factors; in statistics, refers to events that have no effect on the likelihood of other events occurring.

Sampling Distribution

The calculated probability distribution relevant to a specific statistic, achieved by random sampling.

Sample Mean Difference

The difference between the average values of two samples drawn from a population.

Populations

The entire pool from which a statistical sample is drawn and to which inferences are aimed in statistics.