Gates Auto Inc

question 89

Multiple Choice

Gates Auto Inc.manufactures automobile engines in the United States.Gates Auto Inc.sells 200 of its 8 - cylinder Hoste model engines to a company in Canada.The total price for these engines is C$60,000.Gates Auto Inc.will deliver the engines today and receive payment in 3 months from the Canadian company.When payment is received Gates Auto will convert the C$60,000 into U.S.dollars.The spot rate is $0.7865/C$ and if the spot rate in 3 months is $0.7622/C$,how much will Gates Auto Inc.gain or lose due to exchange rate movements on this transaction if it does not perform any hedges.

• A) They will lose $1,458.29
• B) They will gain $1,458.29
• C) They will not gain or lose anything on this transaction.
• D) They will gain $31,530

Understand the calculation of sample mean and its distinction from population mean.

Grasp the concept of sample statistics as summary measures for data analysis.

Understand the concept and calculation of the coefficient of variation as a measure of relative variability.

Analyze the importance of selecting appropriate denominators in variance computation for sample versus population data.

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Definitions:

Confirmation

The action of verifying or validating something to prove its accuracy or authenticity.

Knowledge

Information, understanding, or skill that one gains through education or experience, enabling them to perform tasks, make decisions, or understand subjects.

Psychological Processes

Internal processes that involve thoughts, feelings, and motivations that influence behavior.

Letting Go

The process of releasing emotional attachments or relinquishing control over situations or individuals, often considered a necessary step in healing and personal growth.