As Illustrated in the Sample Item-Characteristic Curve Published in Your

question 134

Multiple Choice

As illustrated in the sample item-characteristic curve published in your textbook,the vertical axis on the graph lists the

• A) values of the score on the test ranging from 0 to 100.
• B) values of the characteristic of the items on a scale of 1 to 10.
• C) heteroscedasity of the item curve in values ranging from 0 to infinity.
• D) probability of correct response in values ranging from 0 to 1.

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Definitions:

Law Of One Price

Assumption that any given good or service would carry the same price everywhere if allowed free movement across national borders.

Foreign Exchange Rates

The price of one country's currency in terms of another currency, affecting international trade and investment.

Pegs

A system where a country's currency value is fixed relative to a reference value, such as gold or another currency.

Overvalued Currencies

A situation where a currency is trading at a higher value on the foreign exchange market than is warranted by the country’s economic fundamentals.