Use the data given in question 23 of Chap. 2 to compute the correlation between the dollar/pound exchange rate and the dollar/yen exchange rate.

Question 23 of Chap. 2

You are given the following exchange rate information for the number of dollars it takes to buy 1 British pound and the number of dollars it takes to buy 100 Japanese yen:

(a) Draw a line chart showing the exchange rates between British pounds (BP)
and US dollars during this period.

(b) Draw a line chart showing the exchange rates between Japanese yen and US dollars.

(c) Use Microsoft Excel to draw a line chart containing the exchange rates in a and a line chart representing the exchange rates in b.

Transcribed Image Text:

Month Jan 88 Feb 88 Mar 88 Apr 88 May 88 Jun 88 Jul 88 $/BP 1.7505 1.7718 1.8780 1.8825 1.8410 1.7042 1.7160 $/100 yen .7722 .7782 .8042 .8015 .7995 .7475 .7533