The purpose of this assignment is for you to analyze the relationship between the foreign sales of a company and the relevant exchange rate. The steps to collect the requisite data follow.

1. Choose a publicly traded firm with international business. A few examples of firms that report the necessary data are Apple, Coca-Cola, Accenture, National Instruments, 3M, Marriot, Cisco, Alphabet, and NetApp. You do not have to use any of these firms, but I have verified that they all report quarterly foreign sales on their 10-Qs.

2. Obtain 15 quarters of foreign sales data in any one currency from the 10-Qs for your chosen company from the SEC EDGAR website.

3. Obtain exchange rate data from Yahoo! Finance. Be sure to gather monthly data so you can calculate quarterly returns that match your financial statement reporting periods. Once you have gathered and organized your data, create your own spreadsheet that addresses the following questions.

After you have completed the Excel portion, write a brief report interpreting your findings. Ensure you address key details in the report (e.g. slope coefficients and statistical significance vs. correlation coefficients).

1. Estimate the correlation coefficient between the percent change in the foreign units sales and the exchange rate returns.

2. Estimate the relationship between the percent changes in the foreign units sales and the exchange rate returns with regression analysis.

3. Repeat step 2 by estimating the beta with the SLOPE function. It should agree with your regression output.

4. Create a scatterplot with percent changes in unit sales on the y-axis and exchange rate returns on the x-axis. Be sure to include a trend line and the equation for the line. It should also agree with your regression output.