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Explain Purchasing Power Parity

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Explain purchasing power parity.


Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically denoted by alpha.

Rule of Five

A statistical rule of thumb asserting that normal approximation can be used if an expected frequency is 5 or more in all categories of a binomial distribution.

Chi-squared Goodness-of-fit Test

A statistical test to determine if observed data deviates significantly from the expected distribution.

Grade Distribution

The statistical spread or pattern of grades received by students in a course or examination.

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