Question:

IBM has substantial operations in many countries, including the United States, Canada, and Germany. Go to finance.yahoo.com/q?s=ibm.

1. Click on Historical Prices. (Or apply this exercise to a different MNC.) Set the date range so that you can obtain quarterly values of the U.S. stock index for the last 20 quarters. Insert the quarterly data on a spreadsheet. Compute the percentage change in IBM's stock price for each quarter. Next go to finance.yahoo.com/stock-center/ and click (under U.S.) on S&P Composite 1500 Index, which represents the U.S. stock market index, so that you can derive the quarterly percentage change in the U.S. stock index over the last 20 quarters. Then run a regression analysis with IBM's quarterly return (percentage change in stock price) as the dependent variable and the quarterly percentage change in the U.S. stock market's value as the independent variable. (Appendix C explains how Excel can be used to run regression analysis.) The slope coefficient serves as an estimate of the sensitivity of IBM's value to the U.S. market returns. Also, check the fit of the relationship based on the R-squared statistic.

2. Go to finance.yahoo.com/stock-center/ and click (under "Europe") on DAX, which represents the German stock market index. Repeat the process described in exercise 1 so that you can assess IBM's

sensitivity to the German stock market. Compare the slope coefficient between the two analyses. Is IBM's value more sensitive to the U.S. market or the German market? Does the U.S. market or the German market explain a higher proportion of the variation in IBM's returns (check the R-squared statistic)? Offer an explanation of your results.

QUESTION 1 Consider a Markov chain with (one-step) transition probability matrix P= How many communicating classes does the Markov chain have? QUESTION 2 Consider a Markov chain with (one-step) transition probability matrix P= " . How many communicating classes does the Markov chain have? QUESTION 3 Consider a Markov chain with (one-step) transition probability matrix P=|9 . What is the period of state 0? (If the state is aperiodic, enter 1.)O B. It is a continuous random variable. Print O C. It is not a random variable C. Is the response to the survey question "Did you smoke in the last week?" a discrete random variable, a continuous random variable, or not a random variable? O A. It is a discrete random variable. O B. It is a continuous random variable. O C. It is not a random variable. d. Is the amount of snowfall in December in City A a discrete random variable, a continuous ile, random variable, or not a random variable? O A. It is a discrete random variable. O B. It is a continuous random variable. O C. It is not a random variable. e. Is the number of bald eagles in a country a discrete random variable, a continuous random a disc variable, or not a random variable? O A. It is a continuous random variable. O B. It is a discrete random variable. O C. It is not a random variable.Determine whether the value is a discrete random variable, continuous random variable, or not a random variable A. The number of textbook authors now sitting at a computer b. The number of people with blood type A in a random sample of 32 people c. The eye color of people on commercial aircraft flights d The square footage of a house a. The time it takes to fly from City A to City B L The number of points scored during a basketball game a. Is the number of textbook authors now sitting at a computer a discrete random variable, a continuous random verisble, or not a random variable? A. It is a continuous random variable. O B. is a discrete random veriable. O C. It is not a random variable. b. is the number of people with blood type A in a random sample of 32 people a discrete random variable, a continuous random variable, or not a random variable Q A. It is a continuous random variable. Q B. It is a discrete random variable O C. is not a random variable c Is the eye color of people on commercial aircraft flights a discrete random variable, a continuous random variable, or not a random variable? O A. It is a continuous random variable O B. It is a discrete random variable, O G, It is not a random vanable. d. is the square footage of a house a discrete random variable, a continuous random variable, or not a random vanable? O A. it is a continuous random variable. O B. it is a discrete random variable ( C. it is not a random variable. e. is the time il takes to fly from Cry A to City Ba discrete random variable, a continuous random variable, or not a random variable? A. E is a continuous random vanable1. Consider the Markov chain with three states S=[1,2,3), that has the following transition probability matric 0 NI-WIHNI O Draw the state transition diagram for this chain. Write the transition probability matrix for three steps. 2. Write Markov transition matrix for following state transition diagram: Classify of states of the Markov chain. 3. Find eigenvalues and eigenvectors of the transition probability matrix for following system: 0.4 0.6 0.8 rain no rain