{"id":1041,"date":"2023-06-22T01:45:16","date_gmt":"2023-06-22T01:45:16","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introstatstest\/chapter\/normal-distribution-background-youll-need-1\/"},"modified":"2025-05-16T02:11:40","modified_gmt":"2025-05-16T02:11:40","slug":"normal-distribution-background-youll-need-1","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introstatstest\/chapter\/normal-distribution-background-youll-need-1\/","title":{"raw":"Module 7: Background You'll Need 1","rendered":"Module 7: Background You&#8217;ll Need 1"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li>Label the means and standard deviations of histograms.<\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Labeling Histograms: Big Mac Index<\/h2>\r\n<p>In 1986, <em>The Economist<\/em> invented the Big Mac index[footnote]The Big Mac index. (2021, July 21). <em>The Economist<\/em>. 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 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.<\/p>\r\n<p>The following table lists Big Mac prices (in U.S. dollars) of 6 different countries in January 2021.[footnote]<em>Big-mac-data<\/em>. (2021, January). GitHub. https:\/\/github.com\/theeconomist\/big-mac data\/releases\/tag\/2021-01[\/footnote]<\/p>\r\n<div align=\"left\">\r\n<table style=\"width: 175px;\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 172.109px;\"><strong>Country<\/strong><\/td>\r\n<td style=\"width: 210.891px;\"><strong>Cost of a Big Mac<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 172.109px;\">Argentina<\/td>\r\n<td style=\"width: 210.891px;\">$3.75<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 172.109px;\">Australia<\/td>\r\n<td style=\"width: 210.891px;\">$4.98<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 172.109px;\">South Korea<\/td>\r\n<td style=\"width: 210.891px;\">$4.10<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 172.109px;\">Egypt<\/td>\r\n<td style=\"width: 210.891px;\">$2.72<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 172.109px;\">Mexico<\/td>\r\n<td style=\"width: 210.891px;\">$2.68<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 172.109px;\">United States<\/td>\r\n<td style=\"width: 210.891px;\">$5.66<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<div>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]1502[\/ohm2_question]<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]1503[\/ohm2_question]<\/section>\r\n<\/div>\r\n<\/div>\r\n<p>When doing statistical analysis, we are often interested in seeing what values fall within one, two, or three standard deviations of the mean.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]1504[\/ohm2_question]<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]1505[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li>Label the means and standard deviations of histograms.<\/li>\n<\/ul>\n<\/section>\n<h2>Labeling Histograms: Big Mac Index<\/h2>\n<p>In 1986, <em>The Economist<\/em> invented the Big Mac index<a class=\"footnote\" title=\"The Big Mac index. (2021, July 21). The Economist. https:\/\/www.economist.com\/big-mac-index\" id=\"return-footnote-1041-1\" href=\"#footnote-1041-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[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 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.<\/p>\n<p>The following table lists Big Mac prices (in U.S. dollars) of 6 different countries in January 2021.<a class=\"footnote\" title=\"Big-mac-data. (2021, January). GitHub. https:\/\/github.com\/theeconomist\/big-mac data\/releases\/tag\/2021-01\" id=\"return-footnote-1041-2\" href=\"#footnote-1041-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/p>\n<div style=\"text-align: left;\">\n<table style=\"width: 175px;\">\n<tbody>\n<tr>\n<td style=\"width: 172.109px;\"><strong>Country<\/strong><\/td>\n<td style=\"width: 210.891px;\"><strong>Cost of a Big Mac<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 172.109px;\">Argentina<\/td>\n<td style=\"width: 210.891px;\">$3.75<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 172.109px;\">Australia<\/td>\n<td style=\"width: 210.891px;\">$4.98<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 172.109px;\">South Korea<\/td>\n<td style=\"width: 210.891px;\">$4.10<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 172.109px;\">Egypt<\/td>\n<td style=\"width: 210.891px;\">$2.72<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 172.109px;\">Mexico<\/td>\n<td style=\"width: 210.891px;\">$2.68<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 172.109px;\">United States<\/td>\n<td style=\"width: 210.891px;\">$5.66<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm1502\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=1502&theme=lumen&iframe_resize_id=ohm1502&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm1503\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=1503&theme=lumen&iframe_resize_id=ohm1503&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<\/div>\n<\/div>\n<p>When doing statistical analysis, we are often interested in seeing what values fall within one, two, or three standard deviations of the mean.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm1504\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=1504&theme=lumen&iframe_resize_id=ohm1504&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm1505\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=1505&theme=lumen&iframe_resize_id=ohm1505&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-1041-1\">The Big Mac index. (2021, July 21). <em>The Economist<\/em>. https:\/\/www.economist.com\/big-mac-index <a href=\"#return-footnote-1041-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-1041-2\"><em>Big-mac-data<\/em>. (2021, January). GitHub. https:\/\/github.com\/theeconomist\/big-mac data\/releases\/tag\/2021-01 <a href=\"#return-footnote-1041-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":8,"menu_order":2,"template":"","meta":{"_candela_citation":"[]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":3053,"module-header":"background_you_need","content_attributions":[],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/pressbooks\/v2\/chapters\/1041"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/wp\/v2\/users\/8"}],"version-history":[{"count":7,"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/pressbooks\/v2\/chapters\/1041\/revisions"}],"predecessor-version":[{"id":6676,"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/pressbooks\/v2\/chapters\/1041\/revisions\/6676"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/pressbooks\/v2\/parts\/3053"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/pressbooks\/v2\/chapters\/1041\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/wp\/v2\/media?parent=1041"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/pressbooks\/v2\/chapter-type?post=1041"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/wp\/v2\/contributor?post=1041"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introstatstest\/wp-json\/wp\/v2\/license?post=1041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}