EXECUTIVE SUMMARY
Statistics has proved to be an essential tool towards gaining a better understanding of many business needs and global economic by collecting, analyzing, interpreting, and presenting of the data.
This paper by using statistic method discussed the main movements of the exchange rate between Australian Dollar against American Dollar (AUD/USD) and Chinese Yuan against American Dollar (RMB/USD) in the past 120 days.
The exchange rates data has been collected and analysed, presented by graphs to show the general trend of exchange rate between AUD/USD and RMB/USD for the past 120 days. The six research questions has been formulated and concluded. We use the statistical techniques such as the regression equation to work out the relationship between AUD/USD and RMB/USD. As well as using the hypothesis testing to find out any significant differences in the variability of the depreciation of USD for the two other currencies.
We were underlying conditions and factors that caused these specific movements to happen. And also economic models with the sample population selected will be used to support the discussion and to analyses the reason for these fluctuations such as the inflation rate and interest rate.
1.0 Background Information
Due to the global financial crisis in 2008, many