Statistics - Assignment Example

Although, the banks are willing to provide the needed investments, it is the decision of the finance manager and the CEO to determine whether such type of activities really help to enhance the company’s performance. Importantly, from the analysis, it can be understood that the company would do well even if it postpones drawing money from the bank. The analysis utilizes various statistical tools to determine the normal probability distribution as well as find the various probabilities asked in the questions.

Introduction If the organization having already achieved sizable success in a particular market or captured the majority market share there, they will venture into new markets. On the other hand, if the currently operating market becomes saturated with heavy competition, then also organizations step into newer markets. Whatever be the motivations, organizations could enter or expand into newer markets with a basic wish to grow further and beat off the competition. When the organization makes that move, apart from fully studying the entering market, it needs to study its strengths and weakness in its various operational sectors.

On those lines, it needs to focus on its financial resources. If the organization has optimal financial resources, it can confidently invest while entering the newer markets. However, when it is deficient in its financial resources, it needs to generate or facilitate flow of funds from external sources like banks in the form of loans. Although, loans from banks can provide the needed impetus for the organization to enter the market, it has inherent risks. This is applicable to USASuperCars as well, as its decision to get loan from the HSBC bank could have risks.

At the same time, USASuperCars could have a strong financial status, and also could have taken the finance based decision based on strong analysis. Thus, this report mainly emphasizes on the development of a suitable suggestion which would help USASuperCars to make financial decisions based on statistical analysis. This report will use proper statistical methods in order to get a better understanding of the decisions that the company needs to undergo. Background Supercars are the term given to a fast sports car, with stunning looks, optimal specifications and very expensive in nature.

As Cheetham (6) stated, although there is no definitive answer, yet the term Supercars “is widely accepted by car enthusiasts to describe an exotic, powerful and expensive car that represents the ultimate performance, styling and pure unadulterated driving thrills.” Due to the elite nature, these cars are not mass produced by the organizations and have exclusive clientele. Considering this elite and exclusive nature of super cars, organizations manufacturing and selling these types of cars have to be very specific and clear cut in the decision they make not only in the internal functioning but also in the strategies, they come up in the external environment.

“Supercars are showcases of a manufacturer's technological ability in design and in performance. They are cost-no-object exercises, built in editions often limited to the marketing department's ability to sell.” (Martin 7). Considering these perspective, the USASuperCars Company is planning to sell minimum number of its cars in four different countries. The company is