Decisions in USASuperCars
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Content
Content………………………………………………….…….….…….….….……..1
Executive summary…………………………………….….….….…….…...2
Introduction………………………………………………………………………..3
Analysis………………………………………………………………………………..4
Find the mean and the standard deviation in world orders………….…4
Analysis the probability and the oer given by HSBC..…………………..6
Who is more risk aversions….……….……….……….……….……….…………8
The risks that the commercial bank faced……………..……….……….……9
The gain and loss………………….……….……….……….…..………………….10
Conclusion………………………………………………………….….…….…..12
Reference…………………………………………….…….….…….….….…….13
Appendix………………………………………………………….…….….……..14
Normal Distribution Table:……….……….……….…………..………………..14
The answer to the question:…………..……….……….……….……….……..15
1
Executive summary
The main purpose of this business report is to make a financial decision for
USASuperCars.
Find the distribution, and work out the mean and the standard deviation in the
total revenue. Analysis the probability and make decision about the offer of
HSBC. Consider the other risks from the uncertainty in exchange rates. Talk about
the differences of the payment in different times and which time of the payment
is good for the bank or the company. Calculate the probability of loss for the
bank, if the offer is accepted and the bank convert all currencies into dollars at
the prevailing exchange rates. Count the bank’s Value-at-Risk and expected profit
depend on the loss that occurs at 5th percentile of the uncertain revenue. Find out
other opinions the bank can choose, if they do not convert currencies in twelve
months’ time.
Now the USASuperCars has listed the sale on the graph about the world orders
by seven groups from five countries at the prevailing exchange rate at that time.
2
Introduction
The USASuperCars is a company, which sells luxury sports cars. Now it has
signed a contract that is selling to various customers from five countries in a
year’ time. They deal in the domestic currencies during the business transactions.
However, the risks, such as the uncertain exchange rate, always occur during this
kind of the case. Therefore, the USASuperCars could be faced to these risks. Now
we will be ready to analysis and solve these potential problems.
3
Analysis
Find the mean and the standard deviation in world orders
In this case, the USASuperCars who sells luxury sports cars has signed a contract
in a years’ time. The graph illustrates the worldwide orders contain some
customers from five countries in seven groups, the quantities and the selling
price in every group. It also shows the exchange rates (to $) that include the
uncertainty estimates and standard deviation.
