On Average, Americans Have Almost Twice as Much Currency as Canadians

question 179

Multiple Choice

On average, Americans have almost twice as much currency as Canadians. What is the most plausible reason for this?

• A) Canadians trust their banking system a lot more.
• B) Americans are a lot richer than Canadians.
• C) The American economy is two times bigger than the Canadian economy.
• D) A lot of U.S. currency is held by foreigners.

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Definitions:

Sample Size

The number of observations or data points collected in a study, which impacts the study’s ability to detect meaningful effects or differences.

Degrees of Freedom

The number of independent values or quantities which can vary in the calculation of a statistic.

Standard Error

A measure of the statistical accuracy of an estimate, often the standard deviation of the sampling distribution of a statistic.

Critical Values

These are threshold points on the scale of the test statistic that delineate the region where the null hypothesis is rejected, essential in determining the significance of the test outcome.