Predicting Exchange Rates
Not what you're looking for?
Dorchester Inc. has asked you to help forecast exchange rates for the three potential countries you have selected for your proposal. First plot exchange rates from the past year and try to identify patterns that can be projected into the future. What exchange rates do you predict for 1 year from now?
1. China
2. Malaysia
3. Czech Republic
Purchase this Solution
Solution Summary
The solution projects, using trend line equation, the exchange rates of the Chinese Yuan, Malaysian Ringgit, and Czech's Koruna vis-a-vis the US dollar one year from today.
Solution Preview
Projecting the exchange rates for the Chinese Yuan:
Date Period Chinese Yuan to US dollar
2-Jan-12 1 0.158655
1-Feb-12 2 0.158567
1-Mar-12 3 0.158743
2-Apr-12 4 0.158870
1-May-12 5 0.158451
1-Jun-12 6 0.156996
2-Jul-12 7 0.157515
6-Aug-12 8 0.157300
7-Sep-12 9 0.156930
6-Oct-12 10 0.156950
6-Nov-12 11 0.156950
6-Dec-12 12 0.156780
Based on the trend line equation of y=-0.000x + 0.159, we can forecast the exchange rate.
Note: Y- refers to the exchange rate of the Chinese Yuan to US Dollar
Date Period Chinese Yuan to US ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.