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Pro Corp, a U.S.-based MNC, uses purchasing power parity to forecast the value of the Thai baht (THB) , which has a current exchange rate of $0.022. Inflation in the U.S. is expected to be 3% during the next year, while inflation in Thailand is expected to be 10%. Under this scenario, Pro Corp would forecast the value of the baht at the end of the year to be:
Proportions
Ratios indicating the fractional part of a whole that have specific characteristics.
Critical Value
A point on the scale of the test statistic beyond which we reject the null hypothesis, significant in hypothesis testing.
Level of Significance
The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of making a Type I error.
Proportions
A statistical measure that reflects the size of a part compared to the whole, typically expressed as a fraction or a percentage.
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