Determine Whether the Graph Could Represent a Variable with a Normal

question 72

Multiple Choice

Determine whether the graph could represent a variable with a normal distribution. Explain your reasoning.

• A)No, the graph crosses the x-axis.
• B)No, the graph is skewed right.
• C)No, the graph is not symmetric.
• D)Yes, the graph fulfills the properties of the normal distribution.

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Definitions:

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine relative currency values and exchange rates.

Spot Market

A public financial market in which financial instruments or commodities are traded for immediate delivery.

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, as anticipated by consumers, businesses, and investors.

Purchasing Power Parity

An economic theory that estimates the amount of adjustment needed on the exchange rate between countries so that an exchange is equivalent to each currency's purchasing power.