Whenever the Mean of the Distribution of Differences Equals Zero

question 8

Multiple Choice

Whenever the mean of the distribution of differences equals zero, then one can be fairly safe in concluding that

• A) the samples probably represent a single population
• B) the samples probably represent different populations
• C) there was absolutely no sampling error
• D) none of these, since the mean can never equal zero

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Definitions:

Fixed Exchange Rate

A system where the government or central bank sets the official exchange rate in relation to the currency of another nation or the value of gold.

Flexible Exchange Rate

A rate of exchange that is determined by the international demand for and supply of a nation’s money and that is consequently free to rise or fall because it is not subject to currency interventions. Also referred to as a “floating exchange rate.”

Fixed Exchange Rate

A currency system where the value of a currency is pegged against another currency, a basket of currencies, or another measure of value.

Trade Deficits

A situation where a country's imports exceed its exports, indicating that it is buying more goods and services than it is selling abroad.