Comm 291 Statistics Populations Parameters 2014 Assignment 2 Berkowitz

The bop method there is allows less possibility for

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The most easily noticeable difference between the graphs is the data being shifted up for the Balance of Payments graph. The Balance of payments graph also does not have the outlier on 2008- 11 that is seen on the customs graph. This is because the BOP method includes all exchange of Canadian currency for intangible assets and goods are not physical trades leaving the Canadian border, as well as normal exports and imports, which are covered by the customs charges. The BOP method there is allows less possibility for outliers, as things like weather or other logistic events won’t affect the figures as drastically like they would for the Customs method, an example of this would be fertilizer in this case. b) Which basis of calculation, “Customs” or “Balance of Payments,” would be more appropriate for: (i) projecting Canada’s foreign exchange earnings? BOP would be more appropriate to calculate foreign exchange earnings as it includes all of Canada’s trade, both physical and intangible. (ii) appropriate for planning capacity in Canadian ports? Customs exchange would be the most appropriate for planning capacity for Canadian ports. It is the exchange of all goods that cross Canadas borders, and for this reason is the best option. c) Are there any exceptional periods during which exports of wheat, zinc, fertilizer, or industrial machines have differed from overall trends? Zinc seems to be spiking about once every 7 months, until it hits a slump and stops spiking again until 2006- 10. Also, Wheat and Fertilizer seem to be moving in tandem together as they both enjoyed a positive spike around 2008- 02. The Fertilizer outlier in customs is also an exceptional period in the Fertilizer series as it is a drastic, sudden and unseen decline. 6 d) For each of two series, compute the total of the four products. Call the new vari...
View Full Document

This document was uploaded on 03/27/2014 for the course COMM 291 at University of British Columbia.

Ask a homework question - tutors are online