Leading Marines Essay

As we know leading Marines is the most important part of the Marine Corp. There are eleven leadership principles, and fourteen leadership traits a great leader demonstrates. These traits &principles help you suppress the leaders that came before us. Everyone has their own style of leadership though. Great leaders must embrace the ethos; Respect and follow the foundations. Accept the challenges he or she will face ahead. A Marine lives by his or her ethos. It’s what makes us a different breed. We are bred to better than the rest. Ethos consists of being a rifleman, carrying on traditions, and does what it takes to get the mission accomplished. Henry Hank Elrod demonstrated prime ethos during the Chosin Reservoir. Elrod lead a platoon in heroic defense for fifteen days. His platoon also demonstrated good ethos for showing the willingness to obey, and determined to follow orders. Also they upheld pride and confidence at all times during the rough times. Leading by these ethos isn’t about the rank you wear, but what’s in your heart. Leaders have to set the example by respecting and following the foundations of the Corp. These foundations are unique. It is putting forth the everyday principles we learned in boot camp, living by a higher standard than everybody else. A good leader is always learning, and uses ethical decision making. Leaders must have respect of their followers, or their words are meaningless. Followship is just as important as the leadership, to have followers as leader a Corporal once said it best,† Strive to create discipline in yourself and your Marines. † Marine leaders go through some of the toughest challenges, whether in combat or garrison. These challenges include: Physical, Mental, and Moral. The biggest type of challenge a leader can face is friction between Marines. Keeping everybody happy is virtually impossible, but as a leader you must try. A physical challenge is keeping combat ready and or not letting body get out of standards. â€Å"Guts and pride cannot replace physical fitness. † Mental challenges as a leader is a huge part in developing to even better leader. Making the right mental decisions can keep your Marines out harm’s way. The moral challenge is the one where a leader has to look within to see the answer. Keeping up with moral is defined by little moments that reflect a leader’s standards. In all being a Marine Corps’ leader is the most sought after, and respected job. A great leader keeps up with his or her ethos, foundations, and is up to the challenges. In the end it’s all about the relationship and the bond which cannot be broken. Leaders teach from history. Just remember the traits and principles that were set fort; â€Å"Marines are not born knowing them, but must learn what they are, and what they represent. †

English as official language of the United States Essay

â€Å"News from 2000 Census is that 49 percent of Hispanics in America are not fluent in English. They are the fastest growing minority in the United States, representing 12. 5 percent of the population. The legal picture for Hispanics is also astonishing. EEOC complaints have more. than doubled in 5 years, and settlements have risen to over $50 million. † (Harrop, 2001) The inhabitants of the United States have never had any official language. Over 6 % of primary school children in the United States were instructed in German until the World War I. Over 45 million American nationals still state that their forefathers spoke German. Large scale immigration in the 20th century led to the inhabitance of multilingual people inside the US. Therefore, around 336 different languages are presently spoken which comprise of 176 endemic dialects. More than 47 million American nationals use a language other than English within their homes including 30 million Spanish speakers. Since a significant number of US nationals feel comfortable while speaking a language other than English, the federal government should not make English the official language of the United States. The US Senate voted to select English the official language and prohibited the use of other languages for federal government orders and services. â€Å"The 63-34 vote, on an amendment offered by the Oklahoma Republican James Inhofe, split the Senate along largely party lines, with only nine of the 44 Democrats voting for it, and just one Republican voting against. † (Cornwell, 2006) Democratic minority leader Harry Reid identified this amendment as â€Å"racist† whereas Ken Salazar, a Colorado Democrat of Hispanic origin, described it as â€Å"divisive and anti-American†. (Cornwell, 2006) Such a law neglects any provisions for services in languages other than English. This would be a problematic situation for those Americans who cannot speak English fluently. This would also force new immigrants to have considerable knowledge of English language before they get US nationality. It is surprising to note that English language voted out German by a difference of just one vote when it was selected as the official language of the US by Congressmen in the year 1795. (Cornwell, 2006) â€Å"Enacted at the apex of the Great Society, the Bilingual Education Act was passed by Congress and signed into law by President Johnson without a single voice raised in dissent. Americans have spent the past 30 years debating what it was meant to accomplish. Was this 1968 law intended primarily to assimilate limited-English-proficient (LEP) children more efficiently? To teach them English as rapidly as possible? To encourage bilingualism and biliteracy? To remedy academic underachievement and high dropout rates? To raise the self-esteem of minority students? To promote social equality? Or to pursue all of these goals simultaneously? The legislative history of the bill provides no definitive answer. † (Crawford, 50) English Only Movement The English Only Movement (EOM), a movement initiated in the 1980s, is a sequel of the procedure of domestic colonialism. This will also lead to the demolition of the other languages which are spoken by minorities. In the year 1979, a Report by Carnegie Corporation pointed out that â€Å"bilingual education was the preeminent civil rights issue within Hispanic communities. † (Penna, Shepherd, pg. 147) Bilingual education also became a key issue creating distress in the Mexican community inside the United States according to different researches carried out by the U. S. Civil Rights Commission ( 1967- 1975). Researches also reveled that the academic system inside the US was thought of as being against the cultural traditions of the Mexican population. This led to negative effects including inferiority complexes amongst the Mexicans. There is no doubt in the fact that the eradication of a community’s traditions and customs is an abuse of the basic civil rights regarding the linguistic and cultural survival of a specific community. On the domestic level, the English Only amendment in the state of California was a triumph for those who support the use of English as an official language. It gave legal status to an issue that goes against biculturalism and bilingualism. During the period between 1986 and 1989, voters and legislators in thirty-nine states took into account plans analogous to the Californian amendment. This led to the appearance of 17 states with English as the official language. The English only third house had been succeeded in bringing bilingual education policy to the leading position of national debate, it includes questions, the approach of scientific teachings of bilingual education and it also contains a federal resolution in this could help English be official language of the United States. Law at the highest point of the great society, the bilingual education act was passed by congress and it was signed to become a law by President Johnson without saying a single word against it. Americans, have spent thirty years in discussing that what it meant to achieve. â€Å"Was this 1968 law intended primarily to assimilate limited-English-proficient (LEP) children more efficiently? To raise the self-esteem of minority students? To promote social equality? Or to pursue all of these goals simultaneously? The legislative history of the bill provides no definitive answer. † (Crawford, 50) Melting Pot Theory The discussion over, if the United States is an assimilationist or form a society embracing many minority groups and culture traditions which are very old. There were some exchanging of views forcefully that United States is a melting pot, which means that people of various nations settle in America and forced to resemble which means to become an American completely. â€Å"The March 14 to 16 poll of 1,007 likely voters with a margin of error of three percentage points showed that 63 percent of Americans would like to have ballots and voting materials only in English, compared with 35 percent who wanted them printed in English and other languages. † (Lawmakers Push Official English, A06) Because these declarations repeat the study of Myths of the Melting Pot, as well as spread throughout wrong ideas about languages which are mostly not challenged but nothing is supported by the record of history. In fact, history of the US language policy – or lack of one – both work at lower price than the logical basis for official English and provide warning lessons about teaching actions to restrict languages which are rarely use. 1. Unfavorable to myth, the United States has never been a basic speaking and/or using only one language country. By the period of time, one from eight of permanent inhabitants reported a languages background other than English in 1976, this is variety of nothing new but some skilled persons in languages or study of languages believe that the United States has been the habitant of more persons able to speak two languages than any other nation in the history of the world. As early as 1664, when the colony of the New Netherlands came into possession of British, eighteen different languages were spoken on Manhattan Island, not including the language spoken by the local inhabitants of America which were numbered more than five hundred in North America at the time. 2. Considering the US history, the prevailing federal policy on languages has only maintained tolerance and adjustments. In spite of the language variety in 1787, the famous took no interest to protect or encourage English: United States constituents. Because discussion were held in private and we must depend on James Madison’s informal notes, it is not clear, if any language issues came up during the federal agreement on social behavior in Philadelphia (Farrand 1913). But available facts strongly suggest that our early leaders regarded language laws of any type as a cause of harm to civil freedom from captivity. 3. Recognizing about rarely spoken languages reflected bilingual and non-English – language schools which were ordinary in many districts until the long time period of World War I. In 1710, British missionaries were invited to maintain schools among the Iroquois League of Ally States, with the demand that students should be informed or taught with their national languages. Parts of bible which were translated in Mohawk language were included in the texts used. In 1802, Congress began a yearly devotion of ($15,000) to encourage â€Å"civilization among the old inhabitants (before the arrival of colonists). † This money was devoted to religious schools in which many schools were bilingual. 4. The liberation policy on languages was the best and ideal policy for this country, but it is no upheld especially among people conquered and angry for supposed un-justice; people living in colonies and some racial people. Attitudes of the 19th centuries towards their right of language were considerably less tolerant than say towards speakers of German, French or Scandinavian languages Conclusion As written in this paper, there are many ways that lower class is being saved from being forgotten in the US. For his reason, it is important to be known by the mysterious ways in which this is happening. Language is another simple of making sure that the class’s position in society is prevailing. â€Å"English as the nation’s dominant language is no more threatened at the turn of the 21st century than it was at the turn of the 20th. To the contrary, it is all the other languages that are endangered – and would soon die out, if not for the replenishing effects of immigration. † (Official English/English Only, n. p. ) It has been as issue for decades that some influential groups/people have been trying to restrict other languages and promote English Language. On the other hand, this policy has not been accepted and approved by the majority of Americans as it is discriminatory. This idea is not hidden that making English as the US official language is the agenda of White Americans – it also unveils the approach of White American as they don’t want more immigrants from the third world countries. Works Cited Cornwell, Rupert. May 20, 2006. At last, America has an official language (and yes, it’s English) Independent, The (London) James Crawford. Language Politics in the U. S. A. : The Paradox of Bilingual Education. Journal Social Justice. Volume: 25. Issue: 3. Year: 1998. Page Number: 50 Maureen E. Harrop. Managing a Non-English-Speaking Workforce – Hispanic Americans – Brief Article – Statistical Data Included. Modern Machine Shop, Nov, 2001 http://findarticles. com/p/articles/mi_m3101/is_6_74/ai_79900955 Accessed, April 21, 2007 Lawmakers Push Official English; Bills Tied to Immigration Reform. The Washington Times. Publication Date: April 3, 2006. Page Number: A06. Official English/English Only . n. d. http://www. elladvocates. org/englishonly. html Accessed, April 21, 2007 David Penna and George W. Shepherd Jr. Racism and the Underclass: State Policy and Discrimination against Minorities. Publisher: Greenwood Press. Place of Publication: New York. Year: 1991. Page Number: 145.

International Law Essay

International law refers to an agreement signed between nation-states binding them to conform to well structured principles and acceptable standards. It primarily concerns relations between nations on specific legal fields such as treaty, humanitarian and criminal laws rather than on issues of individual citizens. The formation of international law came about due to view by legal activists that consented signing of defined principles by sovereign states could limit their power to interfere with other nations internal affairs. This led to the finding of the international criminal court in early 20th century to safeguard states sovereignty and respect for human rights. The international law is based on the customary law, treaty law and other naturally acceptable cords of conducts. To enforce these laws, there exist many international organizations. The United Nations has been charged with the duty to keep and maintain peace and security. This is because since its formation in 1945, its charter has been adhered to by many nations and even the remaining few nations agree with the principles that form it. This makes UN the most influential enforcer of international law. It works towards developing and maintaining friendly relations between states and overseeing the harmonious resolution of conflicts among states. To achieve this, the UN has many departments each charged with a particular function. The international criminal court is one of its mechanisms of dealing with interstate and humanitarian matters (http://www. ohchr. org/EN/ProfessionalInterest/Pages/InternationalLaw. spx). The establishment of UN general assembly was made to undertake study and recommend on ways of progressively developing and safeguarding the international law. To uphold human rights, methods like sending peace keeping troops and initiating peace negotiations have been employed. Guaranteed human peace and harmonious inter-states existence is the best gift this world needs. This shows the importance of these enforcing bodies of the international law and there affiliates.

Access to Healthcare Research Proposal Example | Topics and Well Written Essays - 2500 words

Access to Healthcare - Research Proposal Example When mention is made of access to healthcare, the norm has been to generalise the term to mean the reception of health services (Hendriks, 2007). The researcher sees this as a major problem that gives rise to the existing problem whereby none of the existing healthcare reforms seem to be solving the problem of access to health care for citizens. This is because there has not been any conscious effort aimed at finding the different variables that make up the components of access to healthcare to the ordinary American. In the opinion of Susser (2013), a refusal to distinguish between variables such as quality, affordability, coverage, and comprehensiveness remains a major limitation in the healthcare system. This position is shared by the researcher because healthcare reforms that have been used over the years only seem to tackle one of these variables at a time, thereby never solving the issue of access to healthcare in a holistic manner. Using the Patient Protection an Affordable Care Act (PPACA) passed in 2011 as an example, it would be noted that this reform focuses on coverage options (Access to Healthcare, 2014). Because of this, emphasise has been placed on increasing the number of insured American and reducing the number of insured Americans. But as this approach to access is taken from the perspective of coverage and affordability, the issues of quality and availability continues to exist. For example, under the PPACA, the problem of access to affordable care will be exacerbated by limited community based resources that provide preventive services, primary care access and ongoing care for patients with chronic conditions. As the number of insured citizens also increase, no one really seem to be thinking about how to make health facilities that are equipped with the right infrastructure and personnel to them. In the long run, access to healthcare services in the U.S. becomes regarded as unreliable and prohibit s people from

Perform a task analysis Assignment Example | Topics and Well Written Essays - 500 words

Perform a task analysis - Assignment Example One can get information about task identification by observing people using the product (or recalling how the person uses the product) or from the product’s technical documentation (especially user manual). This is followed by task classification into initial setup, product use, troubleshooting and maintenance, which is followed by task prioritization. The final part of task analysis is the development of task scenarios or task sequence, which arranges product tasks into the way they operate (Fain, 2006). This paper develops task analysis for a mobile phone. The primary goal of using a mobile phone is to communicate with other people having mobile phones by calling them, receiving calls from them, texting or receiving text messages from them. A mobile phone also stores date and time and it helps a person to know date and time. Other functions of the mobile phone include reminding a person about important activities, such as meeting, acting as an alarm to help someone to wake up as desired or perform a desired task at a given time and listening to songs stored in the mobile phone. Task prioritization is based on the importance of the task. For instance, communicating is considered the primary goal of the mobile phone, and it is, therefore given first priority. Second priority tasks are secondary tasks while third priority tasks are tertiary and are not necessary. Fain, W. B. (2006). Georgia Tech Research Institute Accessibility Monograph Series: A Study of Accessibility Issues and Potential Design Solutions for Designers, Procurement Officials, and Consumers. Georgia Tech Research

Determination of Nitrous oxide in gases Essay Example | Topics and Well Written Essays - 1500 words

Determination of Nitrous oxide in gases - Essay Example The paper is a comparative review of a few of the methods used in determination of nitrous oxide in gases. It has been concluded after a time, quality and cost-benefit analysis, that the use of passive diffusion sampling methods followed by thermal desorption and analysis with an EC-GC may be the optimal choice. Ambient air bag sampling- Personnel are fitted with air bags that passively collect fumes of nitrous oxide. The gas is absorbed in an appropriate sorbant material. An active sampling involves filling a sampling bag by means of a personal pump provided with a driving device or another equivalent method. The major disadvantage of the method being that the bags can get punctured and cannot be airlifted unless they are stored in pressurized cabins. Besides the potential for leakage is higher and leak checks using the soap bubble technique have to be performed. (US Govt. NIOSH documents-http://www.cdc.gov/niosh ) Passive dosimeter badges- Workers exposed to Nitrous oxide wear the badges and these absorb the vapour by diffusion principles. The minimum time for exposure is one hour and the maximum is 40 hours (one work day). Sampling capacity 560ppm-hrs, detection limit- 2ppm-hrs, sampling rate- 0.75ml/min, functions between 10%-80% relative humidity, accuracy (Max. Total Error) 25%, functional temperature limits are between 0C-50C (affect result by 5%). The major advantages are that, "no sampling pump is required... The major disadvantage is that badges have to be analysed within one week after the sample period for accuracy. Badges must be used before the expiration date and are usually more expensive than diffusion tubes (http://www.assaytech.com; http://www.labsafety.com) Passive diffusion tubes- Steel tubes packed with molecular sieves and caped with diffusive caps. It has been found that the method is valid for detecting Nitrous oxide between 25 and 1000ppm. The quantitative detection limit is at 2 g. Passive monitors work accurate between 60-90% RH at 25C and can measure concentrations as high as 500ppm for 8 hours. The NIOSH declares the method as, "adequate," for measuring Nitrous Oxide in air as the method is not bulky, does not involve liquids and does not require pre and post calibration. Some types of tubes can be stored in temperatures between 20C-25C for a period of 30 days. Sample recoveries in 30 days were found to be 10% compared to results in day 2. Recovery rates were found to be 98%-100% is varying concentrations. The one disadvantage is because of reliance on samples being tested at the vendor site (http://www.cdc.gov/niosh) Active diffusion tubes- The sample is collected filling a sampling bag by means of a personal pump provided with a driving device or another equivalent method. They consist of a pump that pulls a constant amount of air (usually in l/min), the molecular sieve and a clip for attaching the device onto the breathing zone. No change in results were noted under a Relative Humidity (RH) of 90% under 25 C. Recovery rates were found to be between 99%-100% in varying concentration. The advantage of the method is that it is usually more

Public Sphere Theory Essay Example | Topics and Well Written Essays - 1250 words

Public Sphere Theory - Essay Example Thereby, the public sphere makes possible the emancipation of its participants. In his The Structural Transformation of the Public Sphere, Habermas presents a socio-historical study of the rise, structure and disintegration of the public sphere. He ascribes the disintegration of public dialogue to the predominance of instrumental reason, that is, of a means-end rationality, in contemporary societies. This orientation has led to the impoverishment of cultural tradition and normative structures, on which individuals draw in the process of coming to an understanding. From the critical perspective, the concepts of public sphere and debate are intrinsically connected, because the latter usually constitutes a prerequisite for public sphere to form. Simultaneously, the focus on rationality in the theory of public sphere constitutes an important characteristic and has significant impact on public discourse. Ideas articulated by Jrgen Habermas provide one with guidance to understand the problem of rationality in public sphere and discourse. According to Bohman, Habermas developed a two-level social theory that includes an analysis of communicative rationality and a theory of modern society and modernization. From the critical perspective, the final goal of any public discourse or interaction is a mutual recognition and understanding, not the debate itself. Consequently, interaction cannot be rationalized according to the strategic selection of means, but has to be rationalized based on the reciprocal expectations that guide interaction. Habermas (1979) emphasizes that Whereas the rationalization of purposive-rational action depends on the accumulation of true (empirically or analytically true) knowledge, the rationalizable aspect of communicative action has nothing to do with propositional truth; but has everything to do with the truthfulness of intentional expressions and with the lightness of norms (p.119) Thus, when Habermas speaks of "rationalizing" public discourse, he does not mean imposing a pre-existing set of values, such as those presented by the concept of reason. Rather, Habermas understands by rationalization the process of freeing public debate from those forces that distort communication. These forces thereby prevent the attainment of consensus or agreement arrived free from coercion. In an attempt to define the process of coming to an understanding, Habermas differentiates communicative action from communicative act. A communicative act involves the sharing of factual information and the coordination of action. Communicative action, on the other hand, employs language as a means towards reaching understanding. To this end, participants must have acquired what Habermas terms, communicative competence. That is, participants not only must be able to form grammatically coherent sentences, but must also have developed the ability of critical reflection. He had described this process as the starting point of socio-cultural development in Towards a Reconstruction of Historical Materialism. Now, it becomes a prerequisite for social change and, of course, public discourse and public sphere formation. Whereas communicative acts remain indifferent to the motivations informing statements, communicative act

E-waste Dumping - A Challenging Legal and Ethical Choice in Global Essay

E-waste Dumping - A Challenging Legal and Ethical Choice in Global Business - Essay Example This fast growing waste stream is accelerating because the global market for PCs is far from saturation and the average lifespan of a PC is decreasing rapidly - for instance for CPUs from 4-6 years in 1997 to 2 years in 2005 (Culver, 2005). PCs comprise only a fraction of all e-waste. It is estimated that in 2006 approximately 180 million mobile phones will be retired. Similar quantities of electronic waste are expected for all kinds of portable electronic devices such as PDAs, MP3 players, computer games and peripherals (O'Connell, 2002). A lot of this waste (approximately two thirds) ends up in Asian countries, mainly China and India. There this waste is dismantled by bare hands, by low paid workers. This is a very serious environmental and health hazard for those nations. This paper shall consider the ethical and legal aspect of e-waste dumping in different countries, mainly China. Unfortunately, largely for economic reasons, the developed world has used primarily one method of dealing with this crisis-exporting their e-waste to less developed countries that are unable or unwilling to protect their citizens from the resulting harm to the ecology or public health. The minute quantities of reusable minerals contained within these electronic products have value only in places with paltry wages and where health codes for their extraction are nonexistent or not enforced. As a result, studies estimate that 50% to 80% of all e-waste amassed for "recycling" are shipped abroad to countries such as China, India, and Pakistan. Researchers found that approximately 13 million computer systems were channeled to recyclers in the United States during 2002, suggesting that up to 10 million of these units moved offshore to parts of Asia. In response to the growing concern over how China will manage its increasing piles of waste electrical and electronic equipment (e-waste), central government departments have drafted a number of interrelated legislations. A national pilot program has also been initiated by the National Development and Reform Commission (NDRC) to determine the most suitable model for a Chinese e-waste management system. Growing interest in the e-waste recycling business from the private sector is another indicator of the significant changes in store for China's largely unregulated and environmentally unsound e-waste processing industry. The rationale behind these legislative and market developments is clear, driven by factors such as the environmental and health impacts of e-waste recycling and disposal, and the incentive of complying with international environmental standards. Discussion America discards thousands of tons of e-waste annually. Most of this e-waste consists of computers and electronic items. Computers and electronic equipment contains toxins. The toxins in computers aren't harmful while the computer is intact. The problems start only after the computer is discarded and breaks apart, leeching its ingredients into the environment. In China, e-waste is becoming an important waste stream, both in terms of quantity and toxicity. E-waste refers to discarded appliances, such as televisions and refrigerators, as well as a variety of associated waste products, such as electrical wiring, printed wiring boards (PWBs),

Paper and Coin currency Vs Electronic Money Transfer Systems Essay

Paper and Coin currency Vs Electronic Money Transfer Systems - Essay Example Bill Gates, while delivering his lecture at International Consumer Electronics Show in Las Vegas (Nevada) in January this year, said "Software is providing power, but software has got to provide simplicity. And that's why our investment levels are going up in the toughest problems: Security, privacy, speech recognition, video recognition - and all of those things we will fold into this platform."1 1. Today we are in an IT era and wish to live in a Digital life-style. Being digital has become sort of a fashion statement. The older generation expresses its reservation regarding security issues etc. but the Gen-X is fully geared up to exploit the full potential of Digital age. Well, having said about the 'attitude', it certainly needs to be pointed out that the youth of the day is not as carefree as is being branded, at times, by the elders. The fact is, the technologies like Electronic Money Transfer or Electronic Funds Transfer have proved their utility beyond doubt and we believe in this capability because we understand the intricacies of this technology. Electronic Funds Transfer (EFT) provides for electronic payments and collections. It is a system of transferring money from one bank account directly to another without any paper money changing hands e.g. There's will be more transpa... Electronic Funds Transfer (EFT) provides for electronic payments and collections. It is a system of transferring money from one bank account directly to another without any paper money changing hands e.g. Using Internet or bank transfers. Using ATM/Debit/Credit Cards etc Payments thorough telephone (using voice synthesizers) In fact the Radio Frequency IDs (RFID) technique is also used in Electronic Transfer. RFID tags are used in a wide range of contexts like; Electronic payment cards used in many countries to pay road tolls, bus and metro fares, Electronic security tags used by retailers, 'Intelligent' luggage labels used in some airports etc Monitoring the workers within the factory/ company builiding. Advantages of Using Electronic Money Transfer Salary of an employee can be directly deposited in his/ her bank account. There's will be more transparency in money transfers. For example transfer of huge sums of money to illegal operations like financing the terrorist organizations can now be easily traced, as there will be less number of manual transactions. Money can be transferred in lesser time, usually the same day. It increases the efficiency, safety/ security standards of the bank. Such transfers are less expansive for the bank. Customer is free from the stress of carrying bundles of notes in a bag/ packets etc. hence reducing the threat of robbery. The threat of a 'Returned Check' is gone as well. It results in less paper work meaning less cutting of trees i.e. an environment friendly technique. The day is not far when we do not need to carry any wallet, Credit cards etc. in our pocket, Soon enough we may see the times when we'll have all our banking records, personal details, identification tags etc in a smart chip embedded in the ring of our middle

Accounting and management Essay Example | Topics and Well Written Essays - 1250 words

Accounting and management - Essay Example Wages have increased by almost by 17%, electricity expenses have gone up by 11%; a similar increase has been experienced for accountant charges. Single digit increases have been witnessed by expenses on rent (9.09%), insurance premium (5.66%), and telephone bill (6.25%). The most distressing deviation has been suffered by the component of sundry expenses, by an abnormal amount of 40%. This points out to the fact that the company does not have adequate control on money flowing out in minute amounts. It has spent in necessary amounts that have resulted in the sundry expenses surging so high. The high sundry expenses can have another implication as well. There might be corruption in the system and the employees take undue advantage of the same. There needs to be sufficient control on the expenses as revealed by the analysis. Samuel Pepys needs to carry out adequate research before he embarks on the preparation of annual budget. The company had actually exhibited operational efficiency by garnering a higher sales volume than was budgeted. However, all of that achievement got subsided by the enormous costs incurred by the company. Use of accessories like telephone and electricity must be regulated and used as needed. Unnecessary wastage of costly resources must be avoided. Methodical accounting of all expenses must be carried out and reviewed on a periodical basis so that the purpose for which a cost is occurring gets effectively monitored. The management should initiate proper steps to ensure that they can check the adverse labour rate variance and material cost variance. Though the actual sales has increased from the budgeted sales, yet because of the increased expenditures, the company’s actual profit is lower than that of the budgeted profit. So, to check the excess expenditures proper steps are recommended to the

Feminist and Post-Colonal Theory on a literary text Essay

Feminist and Post-Colonal Theory on a literary text - Essay Example This essay demonstrates that every culture had a way to resist the epic changes that were being imposed by the British Government. And in this story â€Å"Good Advice is Rarer than Rubies† (Rushdie). We see this resistance by the way the way men treat their women in Indian settings. Even though they are modernized they still practice their traditions like arranged marriages and the women also wear the veils except our main character Rehana and some other few women she points out.This essay demonstrates that every culture had a way to resist the epic changes that were being imposed by the British Government. And in this story â€Å"Good Advice is Rarer than Rubies† (Rushdie). We see this resistance by the way the way men treat their women in Indian settings. Even though they are modernized they still practice their traditions like arranged marriages and the women also wear the veils except our main character Rehana and some other few women she points out. In the story al ong a line is described outside the British consulate, this is symbolic of Euro-centrism that those people think that England is better to live in than India (Rushdie). Rehana surprises Muhammad Ali by turning down his offer of a free British visa. She also fails her exams on purpose, and when Ali asks her, she says, â€Å"there are some boys who need me† (Rushdie). Rehana symbolizes resistance to a new culture and thinking.   This paper makes a conclusion that the way the women are interrogated in the British consul symbolizes neo-colonialism (Forster).

Cookies as Spyware Essay Example for Free

Cookies as Spyware Essay This paper addresses Cookies as Spyware. The option chosen was to analyze the issues associated with cookies being used as spyware. Are cookies pieces of malicious, benign, or innocent software? The next paragraphs of this paper will discuss the various uses of cookies. And, then, the paper will conclude with my opinion about cookies based upon my research findings. Since web browsing uses a stateless connection, cookies are used to maintain the state of a browsing session. Cookies are small data files that are produced by a web server that are stored on your computer. Cookies allow a personalized web browsing experience because of the identifying information that they store within them (such as login information, passwords, web pages visited, and/or items placed in a shopping cart). There are different types of cookies that are created for specific purposes. They include session, persistent, first-party, and third-party cookies. Session cookies are used to store information related to a particular visit during one session. Persistent cookies are used to store information permanently on your hard drive about your interactions and/or preferences with a certain web site. First-party cookies are used by the specific site that created them while their website is being visited, whereas third-party cookies are not created by the website that is being visited. Third-party cookies are created by another website besides the website being visited such as a banner advertisement on the web page that is being visited. (â€Å"Encyclopedia,†) While most cookies appear to be used solely for the purpose of enhancing the user’s web browsing experience, cookies can be used for other purposes including adware or spyware if they contain active code. Adware is used to automatically download or display advertisements on a person’s computer. Spyware is technology used to gather information about a person or organization without their consent or knowledge and relay that information back to advertisers or other interested parties. (â€Å"Information security magazine,† 2008) Technology has evolved to the point where cookies can or have been abused, so they are associated with some security risks. The risks associated with cookies are hijacking (session hijacking), inaccurate identification (due to multiple user accounts or different browsers being used on a single PC), poisoning or stealing (cookie manipulation), and lack of expiration or artificially long expiration periods (allowing cookies to remain when they are no longer needed can allow the cookies to be stolen or attacked). (â€Å"Are all cookies,† 2010) All of these security risks can be used to gain access to or steal personal information from a user or their computer. In conclusion, from the research articles reviewed, it is my opinion that cookies are both beneficial and potentially harmful if used improperly. Cookies can be used safely to enjoy their beneficial purposes for web browsing by following some simple rules. Routinely find and delete unnecessary cookies by navigating to the path on your hard drive where your cookies are stored (C:\Documents and Settings\[username]\Cookies). There really isn’t much danger in deleting these files since new cookies are automatically downloaded the next time you visit the site anyway. Also, check to make sure that your browser settings are only allowing first-party cookies (restrict third-party cookies). Another important thing is to install antivirus software (such as Symantec Endpoint Protection, Sophos, McAfee, or any other reputable vendor) and keep your antivirus software updated properly. Perform regular scans on your hard drive and all attached peripherals to prevent infections. Keep operating system patches updated to prevent anyone from hacking your system because of a known vulnerability. Web browsing would be much less personalized if we completely denied ourselves the privileges associated with cookies.

KLSE Relationship with Inflation and Exchange Rates

KLSE Relationship with Inflation and Exchange Rates Capital market is a financial market which is for long term investment funds with the maturities greater than one year. In USA, capital market was controlled by security exchange and it was established in 1934. While in Malaysia, Bank Negara Malaysia (BNM) capital market has been developed since 1980s. It is a market where securities such as common stock, preferred stock and bonds are issued or traded. Companies, government and other organizations use capital market in order to raise funds for their operations. In other words, capital market helps organizations or institutions whether in public and private sector to gain capital. Besides that, capital market also traded an investment funds like debt, equity and mortgage loan. The central bank, Bank Negara Malaysia (BNM) also played a very important role in develop and care of this market. Kuala Lumpur Stock Exchange or more popular known as KLSE is the only one stock market in this country. All the listed securities in Malaysia are done by KLSE since the KLSE is a self-regulatory. Based on this study, KLSE Composite Index are represented by the stock market, money supply represented by M3, consumer price index represented the inflation rates and exchange rates represented by the Malaysian Ringgit (RM) against the US Dollar. In KLSE it has their own rules where buyers and sellers trade their transaction with each other. Since KLSE was established, there were ups and down movement of KLSE causes by many variables. To measure the performance of stock market, stock index is used. Besides, it can be used by all investors as a benchmark for them to evaluate the performance of holding shares. KLSE Composite Index is comprised of 100 companies listed on the exchange. The movement of stock prices can be triggered by the movement in financial sector in particular, that is the money supply. From this situation, there might be a relationship between KLSE Composite Index with money supply. A negative relationship between stock market and inflation in India and by previous study that also comes out with the same result might support the relationship between KLSE Composite Index with inflation rates. The motivation of this study is to find out whether there is a relationship between KLSE Composite Index with the level of money supply, inflation rates and exchange rates. Thus, if the Malaysian economic are facing with inflation, the stock price will be low and vice versa. 1.2 BACKGROUND OF THE STUDY Kuala Lumpur Stock Exchange (KLSE) is a formal stock market and it is widely constructed such as the composite index, EMAS index, and the various sector indices of tin, plantation, hotel, services, automobile, industrial and properties. KLSE is a self-regulatory organization and has emerged as one of the top performing bourses in developing countries in 1992. Based on the previous study, stock index is used to measure the performance of all stock market. KLSE calculate the index for each main sector traded however, mostly it will use the KLSE Composite Index because it will comprise the stocks traded on the KLSE. Since it is the only stock market in Malaysia, the monitoring and supervising do by Minister of Finance (MOF) and by Securities Commission (SC). KLSE Composite Index has been introduced on 1986 where one stock index was needed which can act to stock market performance and Malaysia economy. All the data that has been calculated electronically by KLSE can be taken by brokers companies and other customers at any time since the index is base on minute to minute. KLSE are really a well known stock market in the world. In 1970s and 1980s, KLSE had major development until it had become one of the largest market capitalization bourses in South-East Asia. However, when Singapore out from Malaysia in 1965, the Stock Exchange of Malaysia then, known as the Stock Exchange of Malaysia and Singapore. In spite of, in 1973 when the currency exchange between Malaysia and Singapore drop, again it changes the name and become Kuala Lumpur Stock Exchange and Stock Exchange of Singapore. In 2004, KLSE has changed it name and now it is known as Bursa Malaysia Berhad. This Bursa Malaysia focused to improve the products and services that they conduct. While in year 2005, Bursa Malaysia was listed on the Main Board of Bursa Malaysia Security Berhad. While in KLSE Composite Index, it has been accepted as a local stock market barometer when it was introduced in 1986. From the investor side, the major factors that determine the stock market are the climate of economic. This study investigates the impact of inflation rates, exchange rates and money supply towards stock market. Based on the previous study, there are several researches that have been handled to investigate this dependent variable and independent variables. 1.3 PROBLEM STATEMENT This study is to analyze whether there are significant relationship between KLSE Composite Index as a dependent variables with the money supply (M3), inflation rate and exchange rate as an independent variables. Malaysia stock market performance nowadays has staged at an encouraging recovery and gain in selected blue chips and this can be proved when in 2007, Malaysias economy placed the third largest economy in Southeast Asia. Malaysian stock market is able to provide profitability investment since strong domestic spending give benefit sector trading in Kuala Lumpur Stock Exchange (KLSE). The movement of KLSE Composite Index Inflation depends on many economic factors. For this study, researcher tries to figure out whether the economic factors could affect the performance of KLSE Composite Index. The economic factors for this study refer to money supply, inflation rates and exchange rates. Researcher also tries to figure out, whether the economic factors could be major elements of stock investments. Inflation is happen when a country has printed too much money which will increase the rate of consumer price and also will affect the cost of living. Good news for inflation is, the last report of inflation rate in Malaysia is about only two percent which is in November 2010. There was a negative relationship between inflation rate and stock price. This is because during inflation, cost of living and cost of production will increase and investor will not invest as before inflation happen. Exchange rate refers as a payment or change for person that want to do exchange in currency from one country to currency of other country. While for the study in relationship with exchange rate, it also showed a negative relationship. When there is an increment in level of currency, the charges for each exchange also will be affected. This means they have to change the currency in a large amount and it might affect their money. Therefore, the rational of doing this research is to find out, whether KLSE Composite Index are linked to economic condition in level of money supply, inflation rate and exchange rate? 1.4 OBJECTIVES OF THE STUDY This study is to figure out the relationship, movement and performance of dependent variable and independent variables. It has divided into two types of objectives. The objectives of this study are: 1.4.1 GENERAL OBJECTIVES The major objective of this study is to identify the relationship between dependent variable (KLSE-CI) and independent variables which are money supply, inflation rates and exchange rates in order to know whether there is any positive or negative relationship. 1.4.2 SPECIFIC OBJECTIVES To determine the relationship between inflation rates and KLSE Composite Index To determine the relationship between exchange rates and KLSE Composite Index To identify whether changes in variables are significant in affecting the movement of KLSE Composite Index 1.4.3 NULL HYPOTHESES (H0) There is no significant relationship between KLSE Composite Index (dependent variables) with money supply, inflation rates and exchange rates (independent variables). 1.5 SCOPE OF THE STUDY This research paper is to examine the relationship between Kuala Lumpur Stock Exchange Composite Index with level of money supply (M3), inflation rates (CPI) and exchange rates (Ringgit against US Dollar). The data for this study are gathered a period for 60 months (5 years) from 2006 to 2010. As been stated, the multiple regression analysis is used to measure the relationship between dependent variable and independent variables with monthly basis issued by Bank Negara Malaysia (Central Bank of Malaysia). 1.6 LIMITATION OF THE STUDY There are some limitations in conducting this research. The limitations that have been highlighted are as follow: Limited variables chosen make it difficult to interpret the relationship of dependent variable and independent variables and it been conclude as not really efficient. The data collected are mostly from internet, journals, newspapers and economic reports. Unreliable collected data will lead to unreliable results. The data for this study is gathered for monthly collective data which taken from Bank Negara Malaysia. Only three independent variables (money supply, inflation rates and exchange rates) have been chosen since there are too many internal factors that can classify the relationship and can affect KLSE Composite Index. This study cover period for 60 months (5 years) 2005 to 2010, are considered quite a short period compare to other research. The finding might not be perfectly accurate. For this research, only one country is focused which is Malaysia in order to limit the scope of research. The limitation for this research can be more reliable if the data taken based on weekly basis. Since best research comes with accurate data from weekly or daily basis data. 1.7 SIGNIFICANCE OF THE STUDY This study provides some useful information about the relationship between KLSE Composite Index with levels of inflation rates, exchange rates and money supply. The significant of this study is to build better understanding for readers and useful information to investors in making good investment decision. In addition, this study provides two important aspects in Malaysia economy (exchange rates and inflation rates) which can help companies in Malaysia to make decisions to issue their shares during the period of good economic and during the economic when it face with high inflation. Studies examining the relationship between money supply, inflation rates and exchange rates under Malaysian experiences are very limited, and it is hope from the available findings from this study, it can be use as a direction or reference for further research. CHAPTER 2 2.1 LITERATURE REVIEW According to Ooi Beng Hooi (2011), entitled The Relationship between KLCI and Ringgit Malaysia against US Dollar, he would like to explain the relationship between stock price and currency exchange rate. Researcher had done his research in four years starting from July 2005 until July 2009. Last, he comes out with the conclusion that state that a significance and strong relationship are explained in both KLCI and Ringgit Malaysia against US Dollar. The results of this research are really useful and in can be us as references for future study. According to Noor Azlinna Azizan and Hasyaliny Sulong (2011), entitled The Preparation Towards Asean Exchange Link between Malaysia Stock Market and Asia Countries Macroeconomics Variables Interdependency, they investigated the interaction between stock prices and macroeconomic variables in Asia countries include Malaysia, Indonesia, Singapore, Thailand, India, China, South Korea, Japan and Taiwan to view the interdependency of our stock market to other Asia countries macroeconomics variables. As a result, the researcher found out that only stock price and exchange rates have the most impact to our stock market. According to Oguzhan Aydamer (2009), with the topic of The Relationship Between Stock Prices and Exchange Rates Evidence From Turkey, he disclose the relationship between macroeconomics variables such as money supply, inflation rates, exchange rates, interest rates and stock price. This research is done for 8 years from February 2001 to January 2008 which focuses in one country that is Turkey. After all the research has been made, he then concludes that there is a negative relationship between exchange rates and all stock market indices. Besides, he also stated that other variables are also having negative relationship. According to Aisyah Abdul Rahman, Noor Zahirah Mohd Sidek and Fauziah Hanim Tafri (2009), a research on Macroeconomic Determinants of Malaysian Stock Market, are investigates the relations between selected macroeconomic variables and stock prices for the case of Malaysia. In addition, this research highlights that Malaysian stock market has weak interaction with money supply, exchange rates and interest rates as compared to the industrial production index. Sara Alataqi and Shokoofeh Fazel (2008), with topic Can Money Supply Predict Stock Price said that, when they refer to other previous researcher, most of them come with the same result which a positive casual relationship between money supply and stock prices is frequently hypothesized by some financial analysis. While for both of these researchers, Sara Alataqi and Shokoofeh Fazel theier belive are against with that statement. From the research they have made, the results that they get are totally different with the previous study. They have proved the reason and all the calculated data in their research. As a result, they strongly explained that there is a negative relationship from money supply to stock price and also a negative relationship from interest rate to stock price. Paritosh Kumar (2008), Is Indian Stock Market Related with Exchange Rate and Inflation, said that short-term foreign assets are fully exposed to exchange risk and exchange rates movement might affect the domestic companies. He also strongly believes that, a relationship between exchange rates and stock prices do exists but it just does not rule out any relationship between them. The end result for this research is he admit that there is a significance relationship even though it shows a negative sign which means to a negative relationship. According to Shamail Arzu (2008), Relationship Between Exchange Rates and Stock Prices comes to the conclusion which changes immediately in currency can absolutely affect ups and down in the stock index. Besides, he found that fluctuation in currency rates and movement in stock exchange is negatively will affect imports and exports in a country as well. Koffie Nassar (2005), Money Demand and Inflation said that by doing an analyzing data on the relationship between money supply, prices, inflation and income in Madagascar, it comes to the result which state that a negative correlation do exist and inflation expectations are largely determined by every past events. By controlling inflation in the short run, most of the broad money growth can be effective. It concludes that the variables are not strongly significance with the dependent variable. Ramin Cooper Maysami, Lee Chuin Howe and MohamadAtkin Hamzah (2004), Co-integration Evidence From Stock Exchange of Singapores All-S Stock Indices said that the objective of their research is to examine the relationship between selected macroeconomic variables with Singapore Exchange Stock Indices. The result highlighted that the majority of the macroeconomic variables includes broad money, exchange rates and other factors are much more seriously have strong casual relationship with Singapore Exchange Stock Indices. According to Chandran V.G.R and Norazman Shah Abd Rahman (2004), entitled Causality between Money Supply and Stock Prices: A Preliminary Investigation on Malaysian Stock Market, help the researchers in order to observed the relationship between money supply and stock prices. However, based on this study, researchers are using a simple bivariate Granger causality to test the Malaysian stock market. It shows that by predicting the changes in money supply, thus it may afford for better understanding in stock prices. Ming-Yu Cheng and Hui-Boon Tan (2002), entitled Inflation in Malaysia, sait that the objective of this study is to identify either it contribute to the significance relationship or not. Both researchers come to the same conclusion where based on the variables that they have been discussed, it still significance but it cannot be calssified as strong significance. According to Professor J.P.Gupta, Professor Alian Chevalier and Fran Sayekt (2000), entitled The Casuality between Interest Rate, Exchange Rate and Stock Price in Emerging Markets: The Case of the Jakarta Stock Exchange highlighted that stock market are very complex and it can be very sensitive to exchange rates and interest rates. Any movement in stock market will totally affect the economy. When interest rate and exchange rates are fluctuating, it will cause a bad effect. Other than that, they agreed that interest rate and stock prices are independent series for most of the time and it a same result found in exchange rates which have strong relationship with stock price. Both variables are significance relationship towards stock price. CHAPTER THREE RESEARCH METHODOLOGY To find the result on this research, there are certain methods that can be used in order to determine the information data of relationship between the given variables. In this study, to determine the relationship between dependent variables (KLSE Composite Index) with independent variables (Inflation Rates, Money Supply and Exchange Rates), an analysis named the Multiple Regression Analysis and Statistical Package of Social Science (SPSS) is applied in order to analyze data and enhance better understanding for the result. This study covers the period from 2005 to 2010. These methods are the most applicable because it will evaluate the relationship between the variables. SPSS is used to interpret a result in research while Multiple Regression Analysis is used to measure the linear association between dependent variable and independent variables 3.2 DATA SOURCES Most of the data for this study are come from the secondary data. The closing prices of KLSE Composite Index at the end of each period were gathered and the data were achieved from Quarterly closing prices KLSE Composite Index over the period 2005 to 2010. Data for the independent variables, which are money supply (M3), inflation rate (CPI) and exchange rate were achieved from Monthly Statistical Bulletin issued by Central Bank of Malaysia (Bank Negara Malaysia) from 2005 until 2010. 3.3 THE DATA Based on this study, all the relevant data are the secondary data. There are: KLSE COMPOSITE INDEX Kuala Lumpur Stock Exchange (KLSE), which now known as Bursa Malaysia Berhad is a place for traders to do trading. It contains many counters where each of the counters is for different companies. Besides, it is a self regulatory organization that administers the conduct of its members and also members of stock broking companies. The data for KLSE were gathered from KLSE Yahoo Finance. MONEY SUPPLY Money supply is a total supply of money circulation use in economy. There are several types of measurement in money supply which known as M1, M2 and M3. In this study, researcher focuses more on M3. M3 which refer to broad money are consists of foreign currency deposits, saving deposits, fixed deposits, negotiable certificate deposit (NIDS) and repurchase agreement (Repos). The foreign currency deposits refer to deposit of foreign currencies hold by commercial banks, merchant bank and non-bank Malaysian residents. In this research, the data were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. INFLATION RATES In economics, the inflation rate is a measure of inflation. In this study, the data were obtained from Monthly Statistical Bulletin of Bank Negara Malaysia. EXCHANGE RATES Exchange rate or also known as foreign exchange rate shows the relationship of currency between one country with others. In this research, researcher focuses on Malaysian (MYR) currency with US currency (USD). Increase in Malaysia ringgit means a decrease in the cost of exchange of Malaysian currency with other currency. The data for exchange rate were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. THEORETICAL FRAMEWORK In this study, KLSE Composite Index is chosen as dependent variable and money supply, inflation and exchange rates are classified as the independent variables. This means that the changes in KLSE Composite Index actually depend on the changes in money supply, inflation rates and exchange rates. The diagram of the relationship between both dependent variable and independent variables are being showed below: Money Supply Inflation Rates Kuala Lumpur Stock Exchange Composite Index (KLSE-CI) Exchange Rates Dependent Variable Independent Variable HYPOTHESES This study consists of Null Hypotheses (H0) and Alternative Hypotheses (H1). The hypotheses are as showed below: Hypotheses 1 H0: There is no relationship between money supply and KLSE Composite Index. H1: There is a relationship between money supply and KLSE Composite Index. Hypotheses 2 H0: There is no relationship between inflation rate and KLSE Composite Index. H1: There is a relationship between inflation rate and KLSE Composite Index. Hypotheses 3 H0: There is no relationship between exchange rate and KLSE Composite Index. H1: There is a between exchange rate and KLSE Composite Index. MULTIPLE REGRESSION ANALYSIS Data for this study were being analyzed by using the Statistical Package of Social Science (SPSS) Software. Hypotheses are used to determine the relationship between dependent variables (KLSE Composite Index) and independent variables (money supply-M3, inflation rate, exchange rate). In order to determine the influential of money supply, interest rate and exchange rate towards KLSE Composite Index, a Multiple Regression Analysis is applied. This multiple regression analysis used the independent variables to predict the dependent variables. The Estimated Regression Model as follows: Y = c + ÃŽ ²M + ÃŽ ²F + ÃŽ ²X + ÃŽ µ Where: Y = Dependent Variable (KLSE Composite Index) c = Constant Term ÃŽ ² = Regression Coefficient (Beta Measurement) M = Independent Variable (Money Supply-M3) F = Independent Variable (Inflation Rate) X = Independent Variable (Exchange Rate) ÃŽ µ = Error Term COEFFICIENT RELATIONSHIP Researcher used R2, T-Statistic and F-Statistic to determine the relationship between money supply, inflation rate and exchange rate towards KLSE Composite Index. COEFFICIENT OF DETERMINATION (R2) Coefficient of Determination or known as R2 is the most usually used in linear regression. R2 present how well the regression model describes changes in the value of dependent variable (Y) that can be explained by the independent variables. It shows how the line fits the data. The value of R2 is range from zero to one. The range indicates whether the correlation is strong or not. If R2 is zero, the equation explains that there is no relationship between the dependent variable and independent variables. While if the R2 is 1, the equation explains the relationship between dependent variable and independent variables are do exist. The higher the value of R2, the better the regression equation will be. When value of R2 is higher, the exploratory power will increase and be more accurate for forecasting purposes. An equation of R2: Total VariationR2 = Total Explain Variation This equation are used when researcher decide to calculate by manual. However, in this study, researcher has chosen Statistical Package of Social Science (SPSS) in order to calculate all the data that are gathered from Bank Negara Malaysia for the 60 months periods. The result of this R2 will be shows and explains in analysis and findings. It also will conclude whether all independent variables will explain the dependent variable or it will not. T – STATISTICS ( T-STAT) T- Statistic is used to decide whether to accept or reject the null hypotheses and also to analyze the significant relationship between dependent variable and independent variables. The value in t-table will be compared with the calculated t-value. T is critical value at certain significant T = (n – k – 1) n = number of observations / years k = number of independent variables If the computed t-statistic is greater than t-critical value at certain significant levels, thus reject H0. If the computed t-statistic is lower than t-critical value at certain significant levels, thus accept H0. T-Computed > T Critical Value, accept H1 and reject H0 T-Computed F – STATISTICS (F-STAT) Researcher is also using F-Statistic in order to know the consistency of overall regression equation. F-Statistic will evaluate the significant of each individual component of entire regression model. Equation of F-Statistic is as follows: F = Explained Variation / (k-1) Unexplained Variation / (n-k) Where: F = critical value k = number of independent variable n = number of observation If the computed F-Statistic is greater than F-Statistic value at certain significant level, then reject H0. It is a vice versa when the computed F-Statistic is lower than F-Statistic value at certain significant level, then accept H0. F-Computed > F-Critical Value, accept H1 F-Computed DURBIN WATSON STATISTIC Durbin Watson is used to test the presence of auto correlation. It is appears when time series data are used. Auto correlation gives a downward bias to the standard error of the estimated coefficient (t-value are exaggerated) and hence the estimated coefficient is concluded to be significant when in reality they are not. There are three possibilities where the auto correlation problem might arise: When the independent variables are duplicated When some of the independent variables are miss specified When some important variables are found missing in the model When successive residuals are positively auto correlated, the value of D will be approach zero. If the residual are not correlated, the value of D will be closed to zero. If there is a negative auto correlated, the value of D will be greater than two and could even approach its minimum value of four. Equation of Durbin Watson Statistic (D) is defining as: D = PEARSON CORRELATION ANALYSIS Pearson correlation analysis is a statistical analysis to see the direction and to describe the strength and significance of the relationships between the dependent variables and the independent variables. According to Pearson correlation analysis, the result can be ranked as follows: Less than 0.30 = Week Relationship 0.30 to 0.49 = Moderate Relationship 0.50 to 0.69 = Strong Relationship 0.70 to 0.99 = Very Strong Relationship 1.0 = Perfect Relationship CHAPTER FOUR ANALYSIS AND FINDINGS This chapter provides the findings which are obtained from the Statistical Package for Social Science (SPSS). Through SPSS, the relationship between Money Supply (M3), Inflation Rate and Exchange Rate with KLSE Composite Index can be identified. The researcher used regression in order to measure the linear relationship between dependent variable and independent variables. Coefficient of determinations (R2), T- statistic and F- statistic are the methodologies that being used by researcher to interpret the multiple regressions. All the data were calculated on monthly basis for 60 months period (5-year), which are from January 2006 to December 2010. Table1: Data gathered from monthly statistical bulletin BNM YEAR KLSE M3 INFLATION EXCHANGE Jan-06 914.0100 679276.3000 3.2500 3.7510 Feb-06 928.9400 686040.7000 3.2400 3.7135 Mar-06 926.6300 690830.2000 4.7600 3.6860 Apr-06 949.2300 697329.4000 4.5500 3.6255 May-06 927.7800 699037.4000 3.9100 3.6290 Jun-06 914.6900 700537.8000 3.9000 3.6750 Jul-06 935.8500 705585.5000 4.1100 3.6535 Aug-06 958.1200 717140.9000 3.2800 3.6770 Sep-06 967.5500 716265.6000 3.2700 3.6845 Oct-06 988.3000 725351.2000 3.0700 3.6480 Nov-06 1080.6600 737229.6000 2.9600 3.6180 Dec-06 1096.2400 760301.6000 3.0500 3.5315 Jan-07 1189.3500 776100.8000 3.2400 3.5015 Feb-07 1196.4500 789147.0000 3.1400 3.5060 Mar-07 1246.8700 789222.5000 1.5500 3.4560 Apr-07 1322.2500 796487.8000 1.5500 3.4230 May-07 1346.8900 799238.9000 1.4500 3.4045 Jun-07 1354.3800 788610.8000 1.4400 3.4545 Jul-07 1373.7100 799902.2000 1.6300 3.4540 Aug-07 1273.9300 801630.3000 1.9200 3.5035 Sep-07 1336.3000 804248.7000 1.8300 3.4170 Oct-07 1413.6500 807425.8000 1.9200 3.3418 Nov-07 1396.9800 808446.5000 2.3000 3.3585 Dec-07 1445.0300 832737.8000 2.3900 3.3065 Jan-08 1393.2500 867682.2000 2.2800 3.2360 Feb-08 1357.4000 876225.7000 2.6600 3.1890 Mar-08 1247.5200 884372.9000 2.7600 3.1875 Apr-08 1279.8600 893619.3000 3.0500 3.1580 May-08 1276.1000 898652.6000 3.8100 3.2435 Jun-08 1186.5700 899120.0000 7.6900 3.2665 Jul-08 1163.0900 912693.3000 8.5100 3.2630 Aug-08 1100.5000 904562.2000 8.5000 3.3895 Sep-08 1018.6800 912780.0000 8.2100 3.4575 Oct-08 863.6100 900442.6000 7.6300 3.5625 Nov-08 866.1400 909230.6000 5.7100 3.6175 Dec-08 876.7500 931864.7000 4.3900 3.4640 YEAR KLSE M3 INFLATION EXCHANGE Jan-09 884.4500 946005.1000 3.9100 3.6085 Feb-09 890.6700 944320.5000 3.7100 KLSE Relationship with Inflation and Exchange Rates KLSE Relationship with Inflation and Exchange Rates Capital market is a financial market which is for long term investment funds with the maturities greater than one year. In USA, capital market was controlled by security exchange and it was established in 1934. While in Malaysia, Bank Negara Malaysia (BNM) capital market has been developed since 1980s. It is a market where securities such as common stock, preferred stock and bonds are issued or traded. Companies, government and other organizations use capital market in order to raise funds for their operations. In other words, capital market helps organizations or institutions whether in public and private sector to gain capital. Besides that, capital market also traded an investment funds like debt, equity and mortgage loan. The central bank, Bank Negara Malaysia (BNM) also played a very important role in develop and care of this market. Kuala Lumpur Stock Exchange or more popular known as KLSE is the only one stock market in this country. All the listed securities in Malaysia are done by KLSE since the KLSE is a self-regulatory. Based on this study, KLSE Composite Index are represented by the stock market, money supply represented by M3, consumer price index represented the inflation rates and exchange rates represented by the Malaysian Ringgit (RM) against the US Dollar. In KLSE it has their own rules where buyers and sellers trade their transaction with each other. Since KLSE was established, there were ups and down movement of KLSE causes by many variables. To measure the performance of stock market, stock index is used. Besides, it can be used by all investors as a benchmark for them to evaluate the performance of holding shares. KLSE Composite Index is comprised of 100 companies listed on the exchange. The movement of stock prices can be triggered by the movement in financial sector in particular, that is the money supply. From this situation, there might be a relationship between KLSE Composite Index with money supply. A negative relationship between stock market and inflation in India and by previous study that also comes out with the same result might support the relationship between KLSE Composite Index with inflation rates. The motivation of this study is to find out whether there is a relationship between KLSE Composite Index with the level of money supply, inflation rates and exchange rates. Thus, if the Malaysian economic are facing with inflation, the stock price will be low and vice versa. 1.2 BACKGROUND OF THE STUDY Kuala Lumpur Stock Exchange (KLSE) is a formal stock market and it is widely constructed such as the composite index, EMAS index, and the various sector indices of tin, plantation, hotel, services, automobile, industrial and properties. KLSE is a self-regulatory organization and has emerged as one of the top performing bourses in developing countries in 1992. Based on the previous study, stock index is used to measure the performance of all stock market. KLSE calculate the index for each main sector traded however, mostly it will use the KLSE Composite Index because it will comprise the stocks traded on the KLSE. Since it is the only stock market in Malaysia, the monitoring and supervising do by Minister of Finance (MOF) and by Securities Commission (SC). KLSE Composite Index has been introduced on 1986 where one stock index was needed which can act to stock market performance and Malaysia economy. All the data that has been calculated electronically by KLSE can be taken by brokers companies and other customers at any time since the index is base on minute to minute. KLSE are really a well known stock market in the world. In 1970s and 1980s, KLSE had major development until it had become one of the largest market capitalization bourses in South-East Asia. However, when Singapore out from Malaysia in 1965, the Stock Exchange of Malaysia then, known as the Stock Exchange of Malaysia and Singapore. In spite of, in 1973 when the currency exchange between Malaysia and Singapore drop, again it changes the name and become Kuala Lumpur Stock Exchange and Stock Exchange of Singapore. In 2004, KLSE has changed it name and now it is known as Bursa Malaysia Berhad. This Bursa Malaysia focused to improve the products and services that they conduct. While in year 2005, Bursa Malaysia was listed on the Main Board of Bursa Malaysia Security Berhad. While in KLSE Composite Index, it has been accepted as a local stock market barometer when it was introduced in 1986. From the investor side, the major factors that determine the stock market are the climate of economic. This study investigates the impact of inflation rates, exchange rates and money supply towards stock market. Based on the previous study, there are several researches that have been handled to investigate this dependent variable and independent variables. 1.3 PROBLEM STATEMENT This study is to analyze whether there are significant relationship between KLSE Composite Index as a dependent variables with the money supply (M3), inflation rate and exchange rate as an independent variables. Malaysia stock market performance nowadays has staged at an encouraging recovery and gain in selected blue chips and this can be proved when in 2007, Malaysias economy placed the third largest economy in Southeast Asia. Malaysian stock market is able to provide profitability investment since strong domestic spending give benefit sector trading in Kuala Lumpur Stock Exchange (KLSE). The movement of KLSE Composite Index Inflation depends on many economic factors. For this study, researcher tries to figure out whether the economic factors could affect the performance of KLSE Composite Index. The economic factors for this study refer to money supply, inflation rates and exchange rates. Researcher also tries to figure out, whether the economic factors could be major elements of stock investments. Inflation is happen when a country has printed too much money which will increase the rate of consumer price and also will affect the cost of living. Good news for inflation is, the last report of inflation rate in Malaysia is about only two percent which is in November 2010. There was a negative relationship between inflation rate and stock price. This is because during inflation, cost of living and cost of production will increase and investor will not invest as before inflation happen. Exchange rate refers as a payment or change for person that want to do exchange in currency from one country to currency of other country. While for the study in relationship with exchange rate, it also showed a negative relationship. When there is an increment in level of currency, the charges for each exchange also will be affected. This means they have to change the currency in a large amount and it might affect their money. Therefore, the rational of doing this research is to find out, whether KLSE Composite Index are linked to economic condition in level of money supply, inflation rate and exchange rate? 1.4 OBJECTIVES OF THE STUDY This study is to figure out the relationship, movement and performance of dependent variable and independent variables. It has divided into two types of objectives. The objectives of this study are: 1.4.1 GENERAL OBJECTIVES The major objective of this study is to identify the relationship between dependent variable (KLSE-CI) and independent variables which are money supply, inflation rates and exchange rates in order to know whether there is any positive or negative relationship. 1.4.2 SPECIFIC OBJECTIVES To determine the relationship between inflation rates and KLSE Composite Index To determine the relationship between exchange rates and KLSE Composite Index To identify whether changes in variables are significant in affecting the movement of KLSE Composite Index 1.4.3 NULL HYPOTHESES (H0) There is no significant relationship between KLSE Composite Index (dependent variables) with money supply, inflation rates and exchange rates (independent variables). 1.5 SCOPE OF THE STUDY This research paper is to examine the relationship between Kuala Lumpur Stock Exchange Composite Index with level of money supply (M3), inflation rates (CPI) and exchange rates (Ringgit against US Dollar). The data for this study are gathered a period for 60 months (5 years) from 2006 to 2010. As been stated, the multiple regression analysis is used to measure the relationship between dependent variable and independent variables with monthly basis issued by Bank Negara Malaysia (Central Bank of Malaysia). 1.6 LIMITATION OF THE STUDY There are some limitations in conducting this research. The limitations that have been highlighted are as follow: Limited variables chosen make it difficult to interpret the relationship of dependent variable and independent variables and it been conclude as not really efficient. The data collected are mostly from internet, journals, newspapers and economic reports. Unreliable collected data will lead to unreliable results. The data for this study is gathered for monthly collective data which taken from Bank Negara Malaysia. Only three independent variables (money supply, inflation rates and exchange rates) have been chosen since there are too many internal factors that can classify the relationship and can affect KLSE Composite Index. This study cover period for 60 months (5 years) 2005 to 2010, are considered quite a short period compare to other research. The finding might not be perfectly accurate. For this research, only one country is focused which is Malaysia in order to limit the scope of research. The limitation for this research can be more reliable if the data taken based on weekly basis. Since best research comes with accurate data from weekly or daily basis data. 1.7 SIGNIFICANCE OF THE STUDY This study provides some useful information about the relationship between KLSE Composite Index with levels of inflation rates, exchange rates and money supply. The significant of this study is to build better understanding for readers and useful information to investors in making good investment decision. In addition, this study provides two important aspects in Malaysia economy (exchange rates and inflation rates) which can help companies in Malaysia to make decisions to issue their shares during the period of good economic and during the economic when it face with high inflation. Studies examining the relationship between money supply, inflation rates and exchange rates under Malaysian experiences are very limited, and it is hope from the available findings from this study, it can be use as a direction or reference for further research. CHAPTER 2 2.1 LITERATURE REVIEW According to Ooi Beng Hooi (2011), entitled The Relationship between KLCI and Ringgit Malaysia against US Dollar, he would like to explain the relationship between stock price and currency exchange rate. Researcher had done his research in four years starting from July 2005 until July 2009. Last, he comes out with the conclusion that state that a significance and strong relationship are explained in both KLCI and Ringgit Malaysia against US Dollar. The results of this research are really useful and in can be us as references for future study. According to Noor Azlinna Azizan and Hasyaliny Sulong (2011), entitled The Preparation Towards Asean Exchange Link between Malaysia Stock Market and Asia Countries Macroeconomics Variables Interdependency, they investigated the interaction between stock prices and macroeconomic variables in Asia countries include Malaysia, Indonesia, Singapore, Thailand, India, China, South Korea, Japan and Taiwan to view the interdependency of our stock market to other Asia countries macroeconomics variables. As a result, the researcher found out that only stock price and exchange rates have the most impact to our stock market. According to Oguzhan Aydamer (2009), with the topic of The Relationship Between Stock Prices and Exchange Rates Evidence From Turkey, he disclose the relationship between macroeconomics variables such as money supply, inflation rates, exchange rates, interest rates and stock price. This research is done for 8 years from February 2001 to January 2008 which focuses in one country that is Turkey. After all the research has been made, he then concludes that there is a negative relationship between exchange rates and all stock market indices. Besides, he also stated that other variables are also having negative relationship. According to Aisyah Abdul Rahman, Noor Zahirah Mohd Sidek and Fauziah Hanim Tafri (2009), a research on Macroeconomic Determinants of Malaysian Stock Market, are investigates the relations between selected macroeconomic variables and stock prices for the case of Malaysia. In addition, this research highlights that Malaysian stock market has weak interaction with money supply, exchange rates and interest rates as compared to the industrial production index. Sara Alataqi and Shokoofeh Fazel (2008), with topic Can Money Supply Predict Stock Price said that, when they refer to other previous researcher, most of them come with the same result which a positive casual relationship between money supply and stock prices is frequently hypothesized by some financial analysis. While for both of these researchers, Sara Alataqi and Shokoofeh Fazel theier belive are against with that statement. From the research they have made, the results that they get are totally different with the previous study. They have proved the reason and all the calculated data in their research. As a result, they strongly explained that there is a negative relationship from money supply to stock price and also a negative relationship from interest rate to stock price. Paritosh Kumar (2008), Is Indian Stock Market Related with Exchange Rate and Inflation, said that short-term foreign assets are fully exposed to exchange risk and exchange rates movement might affect the domestic companies. He also strongly believes that, a relationship between exchange rates and stock prices do exists but it just does not rule out any relationship between them. The end result for this research is he admit that there is a significance relationship even though it shows a negative sign which means to a negative relationship. According to Shamail Arzu (2008), Relationship Between Exchange Rates and Stock Prices comes to the conclusion which changes immediately in currency can absolutely affect ups and down in the stock index. Besides, he found that fluctuation in currency rates and movement in stock exchange is negatively will affect imports and exports in a country as well. Koffie Nassar (2005), Money Demand and Inflation said that by doing an analyzing data on the relationship between money supply, prices, inflation and income in Madagascar, it comes to the result which state that a negative correlation do exist and inflation expectations are largely determined by every past events. By controlling inflation in the short run, most of the broad money growth can be effective. It concludes that the variables are not strongly significance with the dependent variable. Ramin Cooper Maysami, Lee Chuin Howe and MohamadAtkin Hamzah (2004), Co-integration Evidence From Stock Exchange of Singapores All-S Stock Indices said that the objective of their research is to examine the relationship between selected macroeconomic variables with Singapore Exchange Stock Indices. The result highlighted that the majority of the macroeconomic variables includes broad money, exchange rates and other factors are much more seriously have strong casual relationship with Singapore Exchange Stock Indices. According to Chandran V.G.R and Norazman Shah Abd Rahman (2004), entitled Causality between Money Supply and Stock Prices: A Preliminary Investigation on Malaysian Stock Market, help the researchers in order to observed the relationship between money supply and stock prices. However, based on this study, researchers are using a simple bivariate Granger causality to test the Malaysian stock market. It shows that by predicting the changes in money supply, thus it may afford for better understanding in stock prices. Ming-Yu Cheng and Hui-Boon Tan (2002), entitled Inflation in Malaysia, sait that the objective of this study is to identify either it contribute to the significance relationship or not. Both researchers come to the same conclusion where based on the variables that they have been discussed, it still significance but it cannot be calssified as strong significance. According to Professor J.P.Gupta, Professor Alian Chevalier and Fran Sayekt (2000), entitled The Casuality between Interest Rate, Exchange Rate and Stock Price in Emerging Markets: The Case of the Jakarta Stock Exchange highlighted that stock market are very complex and it can be very sensitive to exchange rates and interest rates. Any movement in stock market will totally affect the economy. When interest rate and exchange rates are fluctuating, it will cause a bad effect. Other than that, they agreed that interest rate and stock prices are independent series for most of the time and it a same result found in exchange rates which have strong relationship with stock price. Both variables are significance relationship towards stock price. CHAPTER THREE RESEARCH METHODOLOGY To find the result on this research, there are certain methods that can be used in order to determine the information data of relationship between the given variables. In this study, to determine the relationship between dependent variables (KLSE Composite Index) with independent variables (Inflation Rates, Money Supply and Exchange Rates), an analysis named the Multiple Regression Analysis and Statistical Package of Social Science (SPSS) is applied in order to analyze data and enhance better understanding for the result. This study covers the period from 2005 to 2010. These methods are the most applicable because it will evaluate the relationship between the variables. SPSS is used to interpret a result in research while Multiple Regression Analysis is used to measure the linear association between dependent variable and independent variables 3.2 DATA SOURCES Most of the data for this study are come from the secondary data. The closing prices of KLSE Composite Index at the end of each period were gathered and the data were achieved from Quarterly closing prices KLSE Composite Index over the period 2005 to 2010. Data for the independent variables, which are money supply (M3), inflation rate (CPI) and exchange rate were achieved from Monthly Statistical Bulletin issued by Central Bank of Malaysia (Bank Negara Malaysia) from 2005 until 2010. 3.3 THE DATA Based on this study, all the relevant data are the secondary data. There are: KLSE COMPOSITE INDEX Kuala Lumpur Stock Exchange (KLSE), which now known as Bursa Malaysia Berhad is a place for traders to do trading. It contains many counters where each of the counters is for different companies. Besides, it is a self regulatory organization that administers the conduct of its members and also members of stock broking companies. The data for KLSE were gathered from KLSE Yahoo Finance. MONEY SUPPLY Money supply is a total supply of money circulation use in economy. There are several types of measurement in money supply which known as M1, M2 and M3. In this study, researcher focuses more on M3. M3 which refer to broad money are consists of foreign currency deposits, saving deposits, fixed deposits, negotiable certificate deposit (NIDS) and repurchase agreement (Repos). The foreign currency deposits refer to deposit of foreign currencies hold by commercial banks, merchant bank and non-bank Malaysian residents. In this research, the data were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. INFLATION RATES In economics, the inflation rate is a measure of inflation. In this study, the data were obtained from Monthly Statistical Bulletin of Bank Negara Malaysia. EXCHANGE RATES Exchange rate or also known as foreign exchange rate shows the relationship of currency between one country with others. In this research, researcher focuses on Malaysian (MYR) currency with US currency (USD). Increase in Malaysia ringgit means a decrease in the cost of exchange of Malaysian currency with other currency. The data for exchange rate were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. THEORETICAL FRAMEWORK In this study, KLSE Composite Index is chosen as dependent variable and money supply, inflation and exchange rates are classified as the independent variables. This means that the changes in KLSE Composite Index actually depend on the changes in money supply, inflation rates and exchange rates. The diagram of the relationship between both dependent variable and independent variables are being showed below: Money Supply Inflation Rates Kuala Lumpur Stock Exchange Composite Index (KLSE-CI) Exchange Rates Dependent Variable Independent Variable HYPOTHESES This study consists of Null Hypotheses (H0) and Alternative Hypotheses (H1). The hypotheses are as showed below: Hypotheses 1 H0: There is no relationship between money supply and KLSE Composite Index. H1: There is a relationship between money supply and KLSE Composite Index. Hypotheses 2 H0: There is no relationship between inflation rate and KLSE Composite Index. H1: There is a relationship between inflation rate and KLSE Composite Index. Hypotheses 3 H0: There is no relationship between exchange rate and KLSE Composite Index. H1: There is a between exchange rate and KLSE Composite Index. MULTIPLE REGRESSION ANALYSIS Data for this study were being analyzed by using the Statistical Package of Social Science (SPSS) Software. Hypotheses are used to determine the relationship between dependent variables (KLSE Composite Index) and independent variables (money supply-M3, inflation rate, exchange rate). In order to determine the influential of money supply, interest rate and exchange rate towards KLSE Composite Index, a Multiple Regression Analysis is applied. This multiple regression analysis used the independent variables to predict the dependent variables. The Estimated Regression Model as follows: Y = c + ÃŽ ²M + ÃŽ ²F + ÃŽ ²X + ÃŽ µ Where: Y = Dependent Variable (KLSE Composite Index) c = Constant Term ÃŽ ² = Regression Coefficient (Beta Measurement) M = Independent Variable (Money Supply-M3) F = Independent Variable (Inflation Rate) X = Independent Variable (Exchange Rate) ÃŽ µ = Error Term COEFFICIENT RELATIONSHIP Researcher used R2, T-Statistic and F-Statistic to determine the relationship between money supply, inflation rate and exchange rate towards KLSE Composite Index. COEFFICIENT OF DETERMINATION (R2) Coefficient of Determination or known as R2 is the most usually used in linear regression. R2 present how well the regression model describes changes in the value of dependent variable (Y) that can be explained by the independent variables. It shows how the line fits the data. The value of R2 is range from zero to one. The range indicates whether the correlation is strong or not. If R2 is zero, the equation explains that there is no relationship between the dependent variable and independent variables. While if the R2 is 1, the equation explains the relationship between dependent variable and independent variables are do exist. The higher the value of R2, the better the regression equation will be. When value of R2 is higher, the exploratory power will increase and be more accurate for forecasting purposes. An equation of R2: Total VariationR2 = Total Explain Variation This equation are used when researcher decide to calculate by manual. However, in this study, researcher has chosen Statistical Package of Social Science (SPSS) in order to calculate all the data that are gathered from Bank Negara Malaysia for the 60 months periods. The result of this R2 will be shows and explains in analysis and findings. It also will conclude whether all independent variables will explain the dependent variable or it will not. T – STATISTICS ( T-STAT) T- Statistic is used to decide whether to accept or reject the null hypotheses and also to analyze the significant relationship between dependent variable and independent variables. The value in t-table will be compared with the calculated t-value. T is critical value at certain significant T = (n – k – 1) n = number of observations / years k = number of independent variables If the computed t-statistic is greater than t-critical value at certain significant levels, thus reject H0. If the computed t-statistic is lower than t-critical value at certain significant levels, thus accept H0. T-Computed > T Critical Value, accept H1 and reject H0 T-Computed F – STATISTICS (F-STAT) Researcher is also using F-Statistic in order to know the consistency of overall regression equation. F-Statistic will evaluate the significant of each individual component of entire regression model. Equation of F-Statistic is as follows: F = Explained Variation / (k-1) Unexplained Variation / (n-k) Where: F = critical value k = number of independent variable n = number of observation If the computed F-Statistic is greater than F-Statistic value at certain significant level, then reject H0. It is a vice versa when the computed F-Statistic is lower than F-Statistic value at certain significant level, then accept H0. F-Computed > F-Critical Value, accept H1 F-Computed DURBIN WATSON STATISTIC Durbin Watson is used to test the presence of auto correlation. It is appears when time series data are used. Auto correlation gives a downward bias to the standard error of the estimated coefficient (t-value are exaggerated) and hence the estimated coefficient is concluded to be significant when in reality they are not. There are three possibilities where the auto correlation problem might arise: When the independent variables are duplicated When some of the independent variables are miss specified When some important variables are found missing in the model When successive residuals are positively auto correlated, the value of D will be approach zero. If the residual are not correlated, the value of D will be closed to zero. If there is a negative auto correlated, the value of D will be greater than two and could even approach its minimum value of four. Equation of Durbin Watson Statistic (D) is defining as: D = PEARSON CORRELATION ANALYSIS Pearson correlation analysis is a statistical analysis to see the direction and to describe the strength and significance of the relationships between the dependent variables and the independent variables. According to Pearson correlation analysis, the result can be ranked as follows: Less than 0.30 = Week Relationship 0.30 to 0.49 = Moderate Relationship 0.50 to 0.69 = Strong Relationship 0.70 to 0.99 = Very Strong Relationship 1.0 = Perfect Relationship CHAPTER FOUR ANALYSIS AND FINDINGS This chapter provides the findings which are obtained from the Statistical Package for Social Science (SPSS). Through SPSS, the relationship between Money Supply (M3), Inflation Rate and Exchange Rate with KLSE Composite Index can be identified. The researcher used regression in order to measure the linear relationship between dependent variable and independent variables. Coefficient of determinations (R2), T- statistic and F- statistic are the methodologies that being used by researcher to interpret the multiple regressions. All the data were calculated on monthly basis for 60 months period (5-year), which are from January 2006 to December 2010. Table1: Data gathered from monthly statistical bulletin BNM YEAR KLSE M3 INFLATION EXCHANGE Jan-06 914.0100 679276.3000 3.2500 3.7510 Feb-06 928.9400 686040.7000 3.2400 3.7135 Mar-06 926.6300 690830.2000 4.7600 3.6860 Apr-06 949.2300 697329.4000 4.5500 3.6255 May-06 927.7800 699037.4000 3.9100 3.6290 Jun-06 914.6900 700537.8000 3.9000 3.6750 Jul-06 935.8500 705585.5000 4.1100 3.6535 Aug-06 958.1200 717140.9000 3.2800 3.6770 Sep-06 967.5500 716265.6000 3.2700 3.6845 Oct-06 988.3000 725351.2000 3.0700 3.6480 Nov-06 1080.6600 737229.6000 2.9600 3.6180 Dec-06 1096.2400 760301.6000 3.0500 3.5315 Jan-07 1189.3500 776100.8000 3.2400 3.5015 Feb-07 1196.4500 789147.0000 3.1400 3.5060 Mar-07 1246.8700 789222.5000 1.5500 3.4560 Apr-07 1322.2500 796487.8000 1.5500 3.4230 May-07 1346.8900 799238.9000 1.4500 3.4045 Jun-07 1354.3800 788610.8000 1.4400 3.4545 Jul-07 1373.7100 799902.2000 1.6300 3.4540 Aug-07 1273.9300 801630.3000 1.9200 3.5035 Sep-07 1336.3000 804248.7000 1.8300 3.4170 Oct-07 1413.6500 807425.8000 1.9200 3.3418 Nov-07 1396.9800 808446.5000 2.3000 3.3585 Dec-07 1445.0300 832737.8000 2.3900 3.3065 Jan-08 1393.2500 867682.2000 2.2800 3.2360 Feb-08 1357.4000 876225.7000 2.6600 3.1890 Mar-08 1247.5200 884372.9000 2.7600 3.1875 Apr-08 1279.8600 893619.3000 3.0500 3.1580 May-08 1276.1000 898652.6000 3.8100 3.2435 Jun-08 1186.5700 899120.0000 7.6900 3.2665 Jul-08 1163.0900 912693.3000 8.5100 3.2630 Aug-08 1100.5000 904562.2000 8.5000 3.3895 Sep-08 1018.6800 912780.0000 8.2100 3.4575 Oct-08 863.6100 900442.6000 7.6300 3.5625 Nov-08 866.1400 909230.6000 5.7100 3.6175 Dec-08 876.7500 931864.7000 4.3900 3.4640 YEAR KLSE M3 INFLATION EXCHANGE Jan-09 884.4500 946005.1000 3.9100 3.6085 Feb-09 890.6700 944320.5000 3.7100