Recall in the previous stage of the problem, you saw that there was evidence that there was exposure of Hurd$$s cash flows to movements of the exchange rate of the pound. In order to pinpoint the source of the exposure, Hurd estimates the same regression equation again, but this time does it three separate times. In particular, Hurd estimates the regression equation for each business unit individually.

PCFt$=$a$0+$a$1($PCPt$)+\backslash$mu t

The results of these estimates of a$1$

$($the coefficient on PCPt

$)$ are summarized in the following table.

Unit

Regression Coefficient Estimate of a$1$

A Not significant

B Not significant

C Coefficient $=0\mathrm{.}58,$ which is statistically significant

Based on these estimates, which of the following business units most likely have cash flows that are exposed to movements in the pound?

Unit A

Unit B

Unit C