Which of the Following Will Help a Company Hedge Against

question 21

Multiple Choice

Which of the following will help a company hedge against currency fluctuations?

• A) Finding a large supplier to supply all the raw materials
• B) In-house manufacturing of raw materials
• C) Basing business in a single country
• D) Dispersing production to different geographic locations

---

Definitions:

Binomial Formula

A mathematical formula used to determine the number of successes in a fixed number of trials in a binomial experiment, given the probability of success in each trial.

Independent

Refers to a variable in an experiment or study that is purposely manipulated or changed to observe its effect on other variables.

Successful Operations

Activities or series of activities within a process which achieve the intended goals or objectives efficiently and effectively.

Poisson Approximation

A statistical technique used to approximate the probabilities of events with a very low probability over a large number of trials.