Read the Case: China’s Managed Float Why do you think the Chinese government originally pegged the value of the yuan against the U.S. dollar? What were the benefits of doing this to China? What were the costs? What do you think the Chinese government should do? Let the float, maintain the peg, or change the peg in some way? i dont want picture of answer

China’s Managed Float

In 1994, China pegged the value of its currency, the yuan, to the U.S. dollar at an exchange rate of $1 = 8.28 yuan. For the next 11 years, the value of the yuan moved in lockstep with the value of the U.S. dollar against other currencies. By early 2005, however, pressure was building for China to alter its exchange rate policy and let the yuan float freely against the dollar. Underlying this pressure were claims that after years of rapid economic growth and foreign capital inflows, the pegged exchange rate undervalued the yuan by as much as 40 percent. In turn, the cheap yuan was helping to fuel a boom in Chinese exports to the West, particularly the United States, where the trade deficit with China expanded to a record $160 billion in 2004. Job losses among American manufacturing companies created political pressures in the United States for the government to push the Chinese to let the yuan float freely against the dollar. American manufacturers complained that they could not compete against “artificially cheap” Chinese imports. In early 2005, Senators Charles Schumer and Lindsay Graham tried to get the Senate to impose a 27.5 percent tariff on imports from China unless the Chinese agreed to revalue its currency against the U.S. dollar. Although the move was defeated, Schumer and Graham vowed to revisit the issue. For its part, the Bush administration pressured China from 2003 onwards, urging the government to adopt a more flexible exchange rate policy. Keeping the yuan pegged to the dollar was also becoming increasingly problematic for the Chinese. The trade surplus with the United States, coupled with strong inflows of foreign investment, led to a surge of dollars into China. To maintain the exchange rate, the Chinese central bank regularly purchased dollars from commercial banks, issuing them yuan at the official exchange rate. As a result, by mid 2005 China’s foreign exchange reserves had risen to more than $700 billion. They were forecast to hit $1 trillion by the end of 2006. The Chinese were reportedly buying some $15 billion each month in an attempt to maintain the dollar/yuan exchange rate. When the Chinese central bank issues yuan to mop up excess dollars, the authorities are in effect expanding the domestic money supply. The Chinese banking system is now awash with money and there is growing concern that excessive lending could create a financial bubble and a surge in price inflation, which might destabilize the economy. On July 25, 2005, the Chinese finally bowed to the pressure. The government announced that it would abandon the peg against the dollar in favor of a “link” to a basket of currencies, which included the euro, yen, and U.S. dollar. Simultaneously, the government announced that it would revalue the yuan against the U.S. dollar by 2.1 percent, and allow that value to move by 0.3 percent a day. The yuan was allowed to move by 1.5 percent a day against other currencies. Many American observers and politicians thought that the Chinese move was too limited. They called for the Chinese to relax further their control over the dollar/yuan exchange rate. The Chinese resisted. By 2006, pressure was increasing on the Chinese to take action. With the U.S. trade deficit with China hitting a new record of $202 billion in 2005, Senators Schumer and Graham once more crafted a Senate bill that would place a 27.5 percent tariff on Chinese imports unless the Chinese allowed the yuan to depreciate further against the dollar. The Chinese responded by inviting the senators to China, and convincing them, for now at least, that the country will move progressively towards a more flexible exchange rate policy

Read the Case: China’s Managed Float Why do you think the Chinese government originally pegged the value of the yuan against the U.S. dollar? What were the benefits of doing this to China? What were the costs? What do you think the Chinese government should do? Let the float, maintain the peg, or change the peg in some way? i dont wanna picture of answers, please add some personal comment about case

China’s Managed Float

In 1994, China pegged the value of its currency, the yuan, to the U.S. dollar at an exchange rate of $1 = 8.28 yuan. For the next 11 years, the value of the yuan moved in lockstep with the value of the U.S. dollar against other currencies. By early 2005, however, pressure was building for China to alter its exchange rate policy and let the yuan float freely against the dollar. Underlying this pressure were claims that after years of rapid economic growth and foreign capital inflows, the pegged exchange rate undervalued the yuan by as much as 40 percent. In turn, the cheap yuan was helping to fuel a boom in Chinese exports to the West, particularly the United States, where the trade deficit with China expanded to a record $160 billion in 2004. Job losses among American manufacturing companies created political pressures in the United States for the government to push the Chinese to let the yuan float freely against the dollar. American manufacturers complained that they could not compete against “artificially cheap” Chinese imports. In early 2005, Senators Charles Schumer and Lindsay Graham tried to get the Senate to impose a 27.5 percent tariff on imports from China unless the Chinese agreed to revalue its currency against the U.S. dollar. Although the move was defeated, Schumer and Graham vowed to revisit the issue. For its part, the Bush administration pressured China from 2003 onwards, urging the government to adopt a more flexible exchange rate policy. Keeping the yuan pegged to the dollar was also becoming increasingly problematic for the Chinese. The trade surplus with the United States, coupled with strong inflows of foreign investment, led to a surge of dollars into China. To maintain the exchange rate, the Chinese central bank regularly purchased dollars from commercial banks, issuing them yuan at the official exchange rate. As a result, by mid 2005 China’s foreign exchange reserves had risen to more than $700 billion. They were forecast to hit $1 trillion by the end of 2006. The Chinese were reportedly buying some $15 billion each month in an attempt to maintain the dollar/yuan exchange rate. When the Chinese central bank issues yuan to mop up excess dollars, the authorities are in effect expanding the domestic money supply. The Chinese banking system is now awash with money and there is growing concern that excessive lending could create a financial bubble and a surge in price inflation, which might destabilize the economy. On July 25, 2005, the Chinese finally bowed to the pressure. The government announced that it would abandon the peg against the dollar in favor of a “link” to a basket of currencies, which included the euro, yen, and U.S. dollar. Simultaneously, the government announced that it would revalue the yuan against the U.S. dollar by 2.1 percent, and allow that value to move by 0.3 percent a day. The yuan was allowed to move by 1.5 percent a day against other currencies. Many American observers and politicians thought that the Chinese move was too limited. They called for the Chinese to relax further their control over the dollar/yuan exchange rate. The Chinese resisted. By 2006, pressure was increasing on the Chinese to take action. With the U.S. trade deficit with China hitting a new record of $202 billion in 2005, Senators Schumer and Graham once more crafted a Senate bill that would place a 27.5 percent tariff on Chinese imports unless the Chinese allowed the yuan to depreciate further against the dollar. The Chinese responded by inviting the senators to China, and convincing them, for now at least, that the country will move progressively towards a more flexible exchange rate policy

Consider the data.

(a)

What is the value of the standard error of the estimate? (Round your answer to three decimal places.)

(b)

Test for a significant relationship by using the t test. Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₁ ≠ 0
H_a: β₁ = 0

H₀: β₁ ≥ 0
H_a: β₁ < 0    

H₀: β₁ = 0
H_a: β₁ ≠ 0

H₀: β₀ = 0
H_a: β₀ ≠ 0

H₀: β₀ ≠ 0
H_a: β₀ = 0

Find the value of the test statistic. (Round your answer to three decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

State your conclusion.

Do not reject H₀. We conclude that the relationship between x and y is significant.

Reject H₀. We cannot conclude that the relationship between x and y is significant.    

Reject H₀. We conclude that the relationship between x and y is significant.

Do not reject H₀. We cannot conclude that the relationship between x and y is significant.

(c)

Use the F test to test for a significant relationship. Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₀ = 0
H_a: β₀ ≠ 0

H₀: β₁ = 0
H_a: β₁ ≠ 0    

H₀: β₀ ≠ 0
H_a: β₀ = 0

H₀: β₁ ≠ 0
H_a: β₁ = 0

H₀: β₁ ≥ 0
H_a: β₁ < 0

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

What is your conclusion?

Reject H₀. We conclude that the relationship between x and y is significant.

Do not reject H₀. We conclude that the relationship between x and y is significant.   

Do not reject H₀. We cannot conclude that the relationship between x and y is significant.

Reject H₀. We cannot conclude that the relationship between x and y is significant.

Consider the data.

(a)

What is the value of the standard error of the estimate? (Round your answer to three decimal places.)

_________

(b)

Test for a significant relationship by using the t test. Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₀ = 0
H_a: β₀ ≠ 0

H₀: β₁ = 0
H_a: β₁ ≠ 0    

H₀: β₀ ≠ 0
H_a: β₀ = 0

H₀: β₁ ≠ 0
H_a: β₁ = 0

H₀: β₁ ≥ 0
H_a: β₁ < 0

Find the value of the test statistic. (Round your answer to three decimal places.)

_______

Find the p-value. (Round your answer to four decimal places.)

p-value = _______

State your conclusion.

Reject H₀. We conclude that the relationship between x and y is significant.

Do not reject H₀. We conclude that the relationship between x and y is significant.     

Do not reject H₀. We cannot conclude that the relationship between x and y is significant.

Reject H₀. We cannot conclude that the relationship between x and y is significant.

(c)

Use the F test to test for a significant relationship. Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₀ = 0
H_a: β₀ ≠ 0

H₀: β₁ = 0
H_a: β₁ ≠ 0    

H₀: β₁ ≠ 0
H_a: β₁ = 0

H₀: β₁ ≥ 0
H_a: β₁ < 0

H₀: β₀ ≠ 0
H_a: β₀ = 0

Find the value of the test statistic. (Round your answer to two decimal places.)

_______

Find the p-value. (Round your answer to three decimal places.)

p-value = _______

What is your conclusion?

Do not reject H₀. We cannot conclude that the relationship between x and y is significant.

Reject H₀. We cannot conclude that the relationship between x and y is significant.     

Do not reject H₀. We conclude that the relationship between x and y is significant.

Reject H₀. We conclude that the relationship between x and y is significant.

When making inferences concerning the mean difference using two dependent samples, it is necessary to calculate the standard deviation of the sample differences.

Calculate the standard deviation of the sample differences using the following information.

Round to 2 decimal places.

College Placement Test Results

A job candidate with an offer from a prominent investment bank wanted to estimate how many hours she would have to work per week during her first year at the bank. She took a sample of six first-year analysts, asking how many hours they worked in the last week. Construct a 95% confidence interval with her results: 64, 82, 74, 73, 78, and 87 hours.

1. A town’s January high temperature averages 36 o F with a standard deviation of 10 o F, while in July the mean high temperature is 74 o F with standard deviation 8 o F. In which month is it more unusual to have a day with a high temperature of 55 o F? Explain your reasoning. Make sure to compute the z-scores for each temperature to help you compare.

A random sample of starting annual salaries for Lecturers from 2 Ghanaian universities is shown below (in thousands of GHc):

Formulate the hypotheses to determine if KNUST Lecturers are paid less than UG Lecturers?

Justify using both the critical value and p-value approaches. Assume alpha=5%

In 2003, the Accreditation Council for Graduate Medical Education (ACGME) implemented new rules limiting work hours for all residents. A key component of these rules is that residents should work no more than 80 hours per week. The following is the number of weekly hours worked in 2017 by a sample of residents at the Tidelands Medical Center.