If the Price of a Good in the U

question 17

Multiple Choice

If the price of a good in the U.S. is $10 and the unit of foreign currency is the stone, in which case is the real exchange rate 4/5?

• A)the foreign price is 4 stones and the exchange rate is 2 stones per dollar
• B)the foreign price is 5 stones and the exchange rate is 2.5 stones per dollar
• C)the foreign price is 4 stones and the exchange rate is 1/2 stones per dollar
• D)the foreign price is 5 stones and the exchange rate is 2/5 stones per dollar

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Definitions:

Variability

The extent to which data points in a statistical distribution or set differ from each other and from the mean or average.

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Range

The difference between the highest and lowest values in a set of data.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values, showing how much variation there is from the mean.