- Label the means and standard deviations of histograms.
Labeling Histograms: Big Mac Index
In 1986, The Economist invented the Big Mac index[1], 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 amount in any two countries. Note that the Big Mac index was never meant to be completely accurate, but was created as a tool to more easily understand currency exchange rates.
The following table lists Big Mac prices (in U.S. dollars) of 6 different countries in January 2021.[2]
| Country | Cost of a Big Mac |
| Argentina | $3.75 |
| Australia | $4.98 |
| South Korea | $4.10 |
| Egypt | $2.72 |
| Mexico | $2.68 |
| United States | $5.66 |
When doing statistical analysis, we are often interested in seeing what values fall within one, two, or three standard deviations of the mean.