TABLE 4-4 Suppose That Patrons of a Restaurant Were Asked Whether They

question 119

Short Answer

TABLE 4-4
Suppose that patrons of a restaurant were asked whether they preferred water or whether they preferred soda. 70% said that they preferred water. 60% of the patrons were male. 80% of the males preferred water.
-Referring to Table 4-4, the probability a randomly selected patron is a female who prefers water is ________.

---

Definitions:

Absolute Purchasing Power Parity

A theory that suggests that in the absence of transaction costs and barriers to trade, identical goods should have the same price in different countries.

Forward Exchange Rate

The predetermined rate at which two currencies will be exchanged at a future date.

International Fisher Effect

The International Fisher Effect is a theory that suggests differences in nominal interest rates in different countries are directly proportional to changes in the exchange rate between their currencies.

Spot Exchange Rate

The current exchange rate at which one currency can be immediately exchanged for another currency.