Where ${}_t$ is the error term and $b_0$ is a constant.

Suppose that Chance Co$.$ estimates $b_0$ to be $0\mathrm{.}0$ and $b_1$ to be $0\mathrm{.}9.$

Chance Co$.$ seeks to conduct a sensitivity analysis. The MNC determines that there are $3$ possible values for the inflation differential in $3$ months, each with a certain probability of occuring. This data is summarized in the following table.

Complete the sensitivity analysis by entering the remaining expected exchange rate movements. Then answer the question that follows.

Possible Value of Inflation Differential

While the best guess for the expected exchange rate movement is for the pound's exchange rate movement.