Suppose You Paid $2

question 36

Multiple Choice

Suppose you paid $2.50 for a beer in 2004 and $3 exactly a year later.The price in 2004 is measured in _______ dollars; the price in 2005 is measured in _________ dollars.

• A) real; real
• B) nominal; real
• C) real; nominal
• D) nominal; nominal

---

Definitions:

Standard Deviation

A way of measuring how much variety or distribution exists among numerical values.

Expected Value

In probability theory, a weighted average of all possible values of a random variable, reflecting its anticipated outcome.

Sample Proportion

A statistic that estimates the fraction of the population that has a certain trait, characteristic or behavior, calculated as the number of observations in the sample with that trait over the total sample size.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1.