Search for ‘Bank of England exchange rates’ online (www.bankofengland.co.uk/boeapps/database/Rates.

asp?into=GBP) and a Download 1 year of daily exchange rates for one of the currencies listed (any will do).

b Calculate the daily percentage change (in decimal form i.e. 0.1 not 10 per cent), then use Excel to create a frequency bar chart.

c Explain why the distribution is approximately normal.

d Calculate the percentage of observations outside the 95 per cent confidence interval and compare it with the 5 per cent predicted by the normal distribution and comment on the difference.

e Take an extreme outlier and try to find out on the internet a possible event that caused the extreme movement.