Business Report for Corvette: Mean, Standard Deviation and Probability Analysis
Business Report for Corvette
Executive Summary: This report talks about a Company is called Corvette, which sells luxury sports cars in twelve months from now. There is a table shows the order of five customers and in which currencies. Using those data I will find out mean, standard deviation and some probability for analysis. In addition, these is a case involves an offer was given to Corvette by HSBC for estimating whether it is risk or not. Furthermore, we also thought about what role banks plays in the case, and analyzed the bank itself. Banks expected profit is also mentioned. Finally I used the data about my birthday graphed the two models.
Introduction: Reading through the whole report, you can understand whether some of behaviors are risky or appropriate done by seller and buyer, such like Corvette, bank and HSBC. In the main body I will also find out some probabilities and its meaning. On the other hand, I will also mention what is risk-averse and its importance. Expected profit can be a good source of evidence so I will calculate it as well. Finally, linear regressions model will provide you specific meaning of data.
Analysis:
Part1: Revenue from foreign customers
From the questions from 1 to 5, we found out the result of some probabilities that mean some degree of the profitability. Be a luxury cars company, we want to know the average profit from those foreign customers in USD.
According to those mathematic tools, we got the average profit in USD that is 2,175,398 dollars from the contracts, which means we got 50% chance to earn more than it or less.
The consequences from calculation told us that on average, there could be a probability of 5% that the revenue will exceed $ 2,250,000, and it is almost impossible that the revenue could more than $ 2,500,000, which means the chance is almost equal to zero. The chance that this revenue is less than $ 2,150,000 is about 29 percent and the chance that this revenue
Executive Summary: This report talks about a Company is called Corvette, which sells luxury sports cars in twelve months from now. There is a table shows the order of five customers and in which currencies. Using those data I will find out mean, standard deviation and some probability for analysis. In addition, these is a case involves an offer was given to Corvette by HSBC for estimating whether it is risk or not. Furthermore, we also thought about what role banks plays in the case, and analyzed the bank itself. Banks expected profit is also mentioned. Finally I used the data about my birthday graphed the two models.
Introduction: Reading through the whole report, you can understand whether some of behaviors are risky or appropriate done by seller and buyer, such like Corvette, bank and HSBC. In the main body I will also find out some probabilities and its meaning. On the other hand, I will also mention what is risk-averse and its importance. Expected profit can be a good source of evidence so I will calculate it as well. Finally, linear regressions model will provide you specific meaning of data.
Analysis:
Part1: Revenue from foreign customers
From the questions from 1 to 5, we found out the result of some probabilities that mean some degree of the profitability. Be a luxury cars company, we want to know the average profit from those foreign customers in USD.
According to those mathematic tools, we got the average profit in USD that is 2,175,398 dollars from the contracts, which means we got 50% chance to earn more than it or less.
The consequences from calculation told us that on average, there could be a probability of 5% that the revenue will exceed $ 2,250,000, and it is almost impossible that the revenue could more than $ 2,500,000, which means the chance is almost equal to zero. The chance that this revenue is less than $ 2,150,000 is about 29 percent and the chance that this revenue
Bibliography: Risk Aversion. (2012). Retrieved 12 2, 2012, from The free dictionary by FARLEX: http://financial-dictionary.thefreedictionary.com/Risk+averse bankofengland. (n.d.). Retrieved 12 6, 2012, from Bank of England: http://www.bankofengland.co.uk/markets/Pages/forex/reserves/risk_management.aspx Brooks, C. (2008). Introductory Econometrics for Finance. Cambridge. Word Count: 2254