Questions. Provide answers to the questions below.

Does the global nature of the industry economic characteristics present unique challenges? Should Ricoh Company, Ltd. hedge the Canadian dollar against the Japanese yen and American dollar?

Select "yes" for those statements that are accurate and choose "no" for those that are not and explain your answers thoroughly:

a.Ricoh's revenue was affected by exchange rate fluctuations because the product it sold was manufactured in Japan and inventoried in the United States on their way to Canada.

(Click to select)YesNo

b.Fluctuating exchange rates pose significant economic risks to a firm's competitiveness in foreign markets.

(Click to select)YesNo

C.Exporters are disadvantaged when the currency of the country where goods are being manufactured grows stronger relative to the currency of the importing country.

(Click to select)YesNo

d.Ricoh Canada will be facing many challenges due to shifts in exchange rates that are hard to predict because of the many factors involved and the uncertainties surrounding how much these factors will change.

(Click to select)YesNo

e.Companies that export goods to foreign countries always gain in competitiveness when the currency of the country in which the goods are manufactured is strong.

(Click to select)YesNo

f.CFO Richard Perri did express concern and emphasized hedging the Canadian dollar to provide stability in business planning.

(Click to select)YesNo

Walter owns a curio shop in down town; inventory records suggest a particular curio blend is quite popular. Data indicate that on the average, other curio shops sell an average of 12.2 pounds per day of that blend. Walter in an attempt to find out how his sales .Compare with this average, takes a sample of his sales over 200 days and finds a mean of 14.3 pounds, with a standard deviation of 2.7 pounds. Walter does not know if daily sales are normally distributed. What does a 90% C.I reveal about Walter's average sales compared with other tobacco shops?A schoolteacher is investigating the claim that class size does not affect GCSE results. His observations of nine GCSE classes are as follows: Class X1 X2 X3 X4 Yl Y2 Y3 Y4 Y5 Students in class (c ) 35 32 27 21 34 30 28 24 7 Average GCSE point score for class ( p ) 5.9 4.1 2.4 1.7 6.3 5.3 3.5 2.6 1.6 [c=238 [c' =6,884 [p=33.4 _p2 =149.62 _cp = 983 (i) Determine the fitted regression line for p on c. [3] (ii) Calculate the correlation coefficient and carry out a test to establish whether or not the data agrees with the claim that class size does not affect GCSE results. [6] (iii) Following his investigation, the teacher concludes, "bigger class sizes improve GCSE results". Comment on this statement. [2] (iv) Class X5 was not included in the results above and contains 15 students. Calculate an estimate of the average GCSE point score for this individual class and specify the standard error for this estimate assuming the full normal model. [4] [Total 15](i) Define the size and power of a statistical test. [2] An actuary is comparing a set of observed mortality rates with the values predicted by a certain formula. He has calculated the "standardised residuals" for 25 different ages. If the formula is satisfactory these residuals should have a standard normal distribution. He is assuming that the residuals X1..... X25 are independent identically distributed random variables from a A(/,1) distribution and he wishes to carry out a test of the hypotheses Ho : / =0 versus H : /#0. (ii) Write down the test criterion the actuary should use for a symmetrical test of size 5%. [2] (iii) Calculate the power of this test if the true value of / is: (a) 0 (b) 0.5 (c) -0.2 [3] (iv) Hence sketch a graph of the power function for this test as a function of M. [2] [Total 9]