According to a New York Times Article, Shoppers from New

question 223

Multiple Choice

According to a New York Times article, shoppers from New York City have played a game of "retail arbitrage" by shopping at malls in Northern New Jersey, a state where there is no tax on clothing and shoes.Even after accounting for transactions costs, shoppers could still save money on their clothing and footwear purchases.
Source: Ken Belson and Nate Schweber, "Sales Tax Cut in City May Dim Allure of Stores Across Hudson," New York Times, January 18, 2007.
Is the term "arbitrage" correctly used here?

• A)Yes, because shoppers were able to purchase items at lower prices even after deducting their transactions costs.
• B)No, "arbitrage" means buying at a low price and reselling at a higher price but no resale takes place here.
• C)Yes, arbitrage applies even if no resale takes place; in this case the profits are pocketed by the customers themselves.
• D)No, "arbitrage" does not apply to markets that are not in the same geographic area.

Compute critical values and probabilities for standard and non-standard normal variables.

Understand and apply the concept of variance and standard deviation within the context of the normal distribution.

Critically analyze the assumptions and conditions for applying normal distribution models.

Calculate and interpret area under the curve of a normal distribution for specified intervals.

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Definitions:

Politician

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Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more conflicting beliefs, leading to an alteration in beliefs or behaviors to reduce discomfort.

Dissonance

A psychological conflict resulting from incongruent beliefs and attitudes held simultaneously, often leading to an alteration in one of the attitudes to reduce the conflict.

Align

To adjust or arrange something in a straight line, or to bring into cooperation or agreement with a particular group, standard, or belief.