{"id":5094,"date":"2022-08-18T02:55:10","date_gmt":"2022-08-18T02:55:10","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/?post_type=chapter&p=5094"},"modified":"2022-08-18T02:56:56","modified_gmt":"2022-08-18T02:56:56","slug":"8d-coreq","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/chapter\/8d-coreq\/","title":{"raw":"8D Coreq","rendered":"8D Coreq"},"content":{"raw":"In the next preview assignment and in the next class, you will need to label the means\u00a0 and standard deviations of graphs of bell-shaped curves. This will require you to\u00a0 calculate [latex] \u00b11 [\/latex], [latex] \u00b12 [\/latex], and\u00a0[latex] \u00b13 [\/latex] standard deviations from the mean and know how to place\u00a0 those values on a number line.\r\n\r\nLabeling Histograms: Big Mac Index\r\n\r\nIn 1986, The Economist invented the Big Mac index,[footnote]The Big Mac index<\/em>. (2021, July 21). The Economist. https:\/\/www.economist.com\/big-mac-index[\/footnote] an informal guide to understanding whether global currencies are overvalued or undervalued. The index is based on the idea that identical goods, such as the Big Mac, should cost the same\u00a0 amount in any two countries. Note that the Big Mac index was never meant to be\u00a0 completely accurate but was created as a tool to more easily understand currency\u00a0 exchange rates\r\n
\r\n

Question 1<\/h3>\r\nThe following table lists Big Mac prices in different countries in 2021.[footnote]Big-mac-data<\/em>. (2021, January). GitHub. https:\/\/github.com\/theeconomist\/big-mac data\/releases\/tag\/2021-01[\/footnote] Why do you\u00a0 think a Big Mac costs more in some countries?\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Country<\/td>\r\nCost of Big Mac<\/td>\r\n<\/tr>\r\n
Argentina<\/td>\r\n$3.75<\/td>\r\n<\/tr>\r\n
Australia<\/td>\r\n$4.98<\/td>\r\n<\/tr>\r\n
South Korea<\/td>\r\n$4.10<\/td>\r\n<\/tr>\r\n
Egypt<\/td>\r\n$2.72<\/td>\r\n<\/tr>\r\n
Mexico<\/td>\r\n$2.68<\/td>\r\n<\/tr>\r\n
United States<\/td>\r\n$5.66<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<\/div>\r\n
\r\n

Question 2<\/h3>\r\nIn 2021, the average cost of a Big Mac across the world in U.S. dollars was $3.52 with a standard deviation of $0.96.3 The following is a histogram of Big Mac prices\u00a0 across the world.\r\n\r\nNote: Three outliers were removed from the dataset.\r\n\r\nOn the x-axis, label the approximate location of the mean.\r\n\r\n\"\"\r\n\r\n<\/div>\r\n
\r\n

Question 3<\/h3>\r\nWhen doing statistical analysis, we are often interested in seeing what values fall\u00a0 within one standard deviation of the mean. In this case, we can represent the\u00a0 interval within one standard deviation of the mean as $3.52 [latex] \u00b1 [\/latex] $0.96.\r\n
    \r\n \t
  1. Which number is exactly one standard deviation below the mean?<\/li>\r\n \t
  2. Which number is exactly one standard deviation above the mean?<\/li>\r\n \t
  3. Label the x-axis of the histogram in Question 2 using your answers from\u00a0 Parts a and b.<\/li>\r\n<\/ol>\r\n<\/div>\r\n
    \r\n

    Question 4<\/h3>\r\nIn addition to one standard deviation, we are also interested in seeing what values\u00a0 fall within\u00a0[latex] \u00b12 [\/latex] standard deviations of the mean and within [latex] \u00b13 [\/latex] standard deviations of the mean.\r\n
      \r\n \t
    1. Calculate the mean [latex] \u00b12 [\/latex] standard deviations.<\/li>\r\n \t
    2. Calculate the mean [latex] \u00b13 [\/latex] standard deviations.<\/li>\r\n \t
    3. Label the x-axis of the histogram in Question 2 using your answers from\u00a0 Parts a and b.<\/li>\r\n<\/ol>\r\n<\/div>\r\n
      \r\n

      Question 5<\/h3>\r\nThe following table shows the cost of a Big Mac in five countries. For each country in\u00a0 the table, state whether the cost of a Big Mac is to the right or left of the mean and if\u00a0 the cost is higher or lower than average.\r\n
      \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
      Country<\/td>\r\nCost of Big Mac<\/td>\r\nRight or Left of\u00a0 the Mean<\/td>\r\nCost Higher or\r\n\r\nLower Than Average<\/td>\r\n<\/tr>\r\n
      Argentina<\/td>\r\n$3.75<\/td>\r\nright<\/td>\r\nhigher<\/td>\r\n<\/tr>\r\n
      Australia<\/td>\r\n$4.98<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
      South Korea<\/td>\r\n$4.10<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
      Egypt<\/td>\r\n$2.72<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
      Mexico<\/td>\r\n$2.68<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<\/div>\r\n
      \r\n

      Question 6<\/h3>\r\nThe following histogram shows the distribution of Big Mac prices. Use the table in\u00a0 Question 5 to answer the following questions.\r\n\r\n\"\"\r\n
        \r\n \t
      1. Which letter represents the value of the cost of a Big Mac in Argentina?<\/li>\r\n \t
      2. Which letter represents the value of the cost of a Big Mac in Mexico?<\/li>\r\n \t
      3. Which letter represents the value of the cost of a Big Mac in Australia?<\/li>\r\n<\/ol>\r\n<\/div>\r\n \r\n\r\n ","rendered":"

        In the next preview assignment and in the next class, you will need to label the means\u00a0 and standard deviations of graphs of bell-shaped curves. This will require you to\u00a0 calculate [latex]\u00b11[\/latex], [latex]\u00b12[\/latex], and\u00a0[latex]\u00b13[\/latex] standard deviations from the mean and know how to place\u00a0 those values on a number line.<\/p>\n

        Labeling Histograms: Big Mac Index<\/p>\n

        In 1986, The Economist invented the Big Mac index,[1]<\/sup><\/a> an informal guide to understanding whether global currencies are overvalued or undervalued. The index is based on the idea that identical goods, such as the Big Mac, should cost the same\u00a0 amount in any two countries. Note that the Big Mac index was never meant to be\u00a0 completely accurate but was created as a tool to more easily understand currency\u00a0 exchange rates<\/p>\n

        \n

        Question 1<\/h3>\n

        The following table lists Big Mac prices in different countries in 2021.[2]<\/sup><\/a> Why do you\u00a0 think a Big Mac costs more in some countries?<\/p>\n

        \n\n\n\n\n\n\n\n\n\n
        Country<\/td>\nCost of Big Mac<\/td>\n<\/tr>\n
        Argentina<\/td>\n$3.75<\/td>\n<\/tr>\n
        Australia<\/td>\n$4.98<\/td>\n<\/tr>\n
        South Korea<\/td>\n$4.10<\/td>\n<\/tr>\n
        Egypt<\/td>\n$2.72<\/td>\n<\/tr>\n
        Mexico<\/td>\n$2.68<\/td>\n<\/tr>\n
        United States<\/td>\n$5.66<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n
        \n

        Question 2<\/h3>\n

        In 2021, the average cost of a Big Mac across the world in U.S. dollars was $3.52 with a standard deviation of $0.96.3 The following is a histogram of Big Mac prices\u00a0 across the world.<\/p>\n

        Note: Three outliers were removed from the dataset.<\/p>\n

        On the x-axis, label the approximate location of the mean.<\/p>\n

        \"\"<\/p>\n<\/div>\n

        \n

        Question 3<\/h3>\n

        When doing statistical analysis, we are often interested in seeing what values fall\u00a0 within one standard deviation of the mean. In this case, we can represent the\u00a0 interval within one standard deviation of the mean as $3.52 [latex]\u00b1[\/latex] $0.96.<\/p>\n

          \n
        1. Which number is exactly one standard deviation below the mean?<\/li>\n
        2. Which number is exactly one standard deviation above the mean?<\/li>\n
        3. Label the x-axis of the histogram in Question 2 using your answers from\u00a0 Parts a and b.<\/li>\n<\/ol>\n<\/div>\n
          \n

          Question 4<\/h3>\n

          In addition to one standard deviation, we are also interested in seeing what values\u00a0 fall within\u00a0[latex]\u00b12[\/latex] standard deviations of the mean and within [latex]\u00b13[\/latex] standard deviations of the mean.<\/p>\n

            \n
          1. Calculate the mean [latex]\u00b12[\/latex] standard deviations.<\/li>\n
          2. Calculate the mean [latex]\u00b13[\/latex] standard deviations.<\/li>\n
          3. Label the x-axis of the histogram in Question 2 using your answers from\u00a0 Parts a and b.<\/li>\n<\/ol>\n<\/div>\n
            \n

            Question 5<\/h3>\n

            The following table shows the cost of a Big Mac in five countries. For each country in\u00a0 the table, state whether the cost of a Big Mac is to the right or left of the mean and if\u00a0 the cost is higher or lower than average.<\/p>\n

            \n\n\n\n\n\n\n\n\n
            Country<\/td>\nCost of Big Mac<\/td>\nRight or Left of\u00a0 the Mean<\/td>\nCost Higher or<\/p>\n

            Lower Than Average<\/td>\n<\/tr>\n

            Argentina<\/td>\n$3.75<\/td>\nright<\/td>\nhigher<\/td>\n<\/tr>\n
            Australia<\/td>\n$4.98<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
            South Korea<\/td>\n$4.10<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
            Egypt<\/td>\n$2.72<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
            Mexico<\/td>\n$2.68<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n
            \n

            Question 6<\/h3>\n

            The following histogram shows the distribution of Big Mac prices. Use the table in\u00a0 Question 5 to answer the following questions.<\/p>\n

            \"\"<\/p>\n

              \n
            1. Which letter represents the value of the cost of a Big Mac in Argentina?<\/li>\n
            2. Which letter represents the value of the cost of a Big Mac in Mexico?<\/li>\n
            3. Which letter represents the value of the cost of a Big Mac in Australia?<\/li>\n<\/ol>\n<\/div>\n

               <\/p>\n

               <\/p>\n

              1. The Big Mac index<\/em>. (2021, July 21). The Economist. https:\/\/www.economist.com\/big-mac-index ↵<\/a><\/li>
              2. Big-mac-data<\/em>. (2021, January). GitHub. https:\/\/github.com\/theeconomist\/big-mac data\/releases\/tag\/2021-01 ↵<\/a><\/li><\/ol><\/div>","protected":false},"author":574340,"menu_order":10,"template":"","meta":{"_candela_citation":"[]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-5094","chapter","type-chapter","status-publish","hentry"],"part":4997,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/pressbooks\/v2\/chapters\/5094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/wp\/v2\/users\/574340"}],"version-history":[{"count":4,"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/pressbooks\/v2\/chapters\/5094\/revisions"}],"predecessor-version":[{"id":5632,"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/pressbooks\/v2\/chapters\/5094\/revisions\/5632"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/pressbooks\/v2\/parts\/4997"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/pressbooks\/v2\/chapters\/5094\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/wp\/v2\/media?parent=5094"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/pressbooks\/v2\/chapter-type?post=5094"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/wp\/v2\/contributor?post=5094"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/lumen-danacenter-statsmockup\/wp-json\/wp\/v2\/license?post=5094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}