5) Assuming £1.00 = $1.45 and €1.00 = $1.25, the interest rate in the UK is 6.50% and the interest rate in Germany is 5.45%, determine the forward rate of the   £ / € if interest rate parity (IRP) holds. What does this imply about future forward rates? Explain how you can engage in covered interest arbitrage if the spot rate remains the same, and the interest rate in the UK is still 6.50%, and the forward rate is .868 £ / € .

How did the Kings of England begin to centralize political power during the high middle ages?  In what ways were they checked by the church and the nobility?

Which is the optimal return combination for both the US/UK and US Spain?

What role should religion play in government? As you develop your argument, think about the following questions: What do supporters of religion in government (accommodationists) value? How do they view the world? What about those who believe in the separation of church and state (separationists)? Why do they disagree so strongly with the accommodationists? Why might separationists who also happen to be religious believe in the separation of church and state? How can we rectify the fact that America is a religious nation, but one in which religion plays a limited role in government? Do we need to?

2. Let’s use the data from the sea ice extent by year. a. Do a t-test to determine if the slope = 0, give null and alternative hypotheses, test statistic, pvalue, decision and interpretation. b. Construct a residual plot vs fitted values. c. Look at a histogram of the residuals. d. Are there any obvious outliers? Find that observation that is the most glaring and find out how many standard deviations it is from the mean. Can this be justified to be removed? e. Are the assumptions for regression met? (Linearity, Constant Standard Deviation and Normality of errors). If not, which one is violated.

data:

Year Extent

1980 9.18

1981 8.86

1982 9.42

1983 9.33

1984 8.56

1985 8.55

1986 9.48

1987 9.05

1988 9.13

1989 8.83

1990 8.48

1991 8.54

1992 9.32

1993 8.79

1994 8.92

1995 7.83

1996 9.16

1997 8.34

1998 8.45

1999 8.6

2000 8.38

2001 8.3

2002 8.16

2003 7.85

2004 7.93

2005 7.35

2006 7.54

2007 6.04

2008 7.35

2009 6.92

2010 6.98

2011 6.46

2012 5.89

2013 7.45

2014 7.23

2015 6.97

2016 6.08

2017 6.77

2018 6.13

2019 5.66

By using the definition and discussing what is relevant to the situation, interpret each of the following for both the coffee and tea data. Also, compare each for coffee and tea. Be sure to include the relevant information (state the value of or, in the case of the distribution, include the graphs) with each component.

1. Mean
2. Median
3. Modal Interval
4. Range
5. IQR
6. Standard Deviation
7. Distribution of histogram and box plot
8. Slope of each linear model
9. Y-intercept of Coffee vs. Tea
10. Correlation coefficient for each linear model
11. Relevant interpolations or extrapolations
12. Correlation type (from Activity 5) for coffee and tea

Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills for the period 10-year period of 1999 through 2008 are shown in the following table. Use these data to solve the next several problems.

1. Calculate the average return for Large Company Common Stocks for the 10-year period.

2. Calculate the average return for Long Term Corporate Bonds for the 10-year period.

3. Calculate the average return for US T-bills for the 10-year period.

4. Calculate the holding period return for Large Company Common Stocks for the 10-year period.

5. Calculate the holding period return for Long Term Corporate Bonds for the 10-year period.

6. Calculate the holding period return for US T-bills for the 10-year period.

Consider the following Data:

By using the definition and discussing what is relevant to the situation, interpret each of the following for both the coffee and tea data. Also, compare each for coffee and tea. Be sure to include the relevant information (state the value of or, in the case of the distribution, include the graphs) with each component.

1. Mean
2. Median
3. Modal Interval
4. Range
5. IQR
6. Standard Deviation
7. Distribution of histogram and box plot
8. Slope of each linear model
9. Y-intercept of Coffee vs. Tea
10. Correlation coefficient for each linear model
11. Relevant interpolations or extrapolations
12. Correlation type for coffee and tea

Please answer the following questions based on the given graph

(1) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(2) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) On average, the number of passengers of domestic flights increase by ________each year, keeping all else equal.

(3)Create a GrowthModel  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(4)Create a Growth Model  for passengers on Domestic flights. (To two decimal places) On average, the number of passengers of domestic flights increase by ________percent each year, keeping all else equal.

(5) Based on R-squared which model is better for predicting passengers of domestic flights?
Time Series (Trend) Model
Growth Model