If the US Interest Rate Is 4% Per Year and the U

question 4

Multiple Choice

If the U.S. interest rate is 4% per year and the U.K. interest rate is 9% per year, which of the following statements is TRUE?

• A) The dollar will depreciate 4% in one year.
• B) The pound will depreciate 9% in one year.
• C) The pound will depreciate 5% in one year.
• D) The dollar will appreciate 4% in one year.

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Definitions:

Mann-Whitney U Test

is a non-parametric statistical test used to compare differences between two independent groups when the dependent variable is ordinal or continuous but not normally distributed.

Chi-Square Test

A statistical test used to determine the significance of an observed association between categorical variables.

R Test

A statistical test used within the R programming environment to determine the significance of data sets or to compare models.

Statistically Significant

A term indicating that the likelihood of obtaining the observed data, or more extreme, by chance is low if the null hypothesis is true.