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3 years ago

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?

2 answers:

5 0

The Economist magazine in the year 1986, proposed a new index as an alternate measure for exchange rate. This new index studies the price of a Big Mac and compares them to calculate exchange rates. It was argued that McDonald was already established in many countries. Therefore, it can be used as a yardstick to compare the purchasing power of various countries. Hence, serves as a measure of purchasing power party. The main problem with this as that not everybody’s consumption basket includes Bug Macs. Rather, a fraction of the total population consumes it. Instead of representing a basket of diverse goods, it represents a basket consisting of a single commodity. As a result, Big Mac index will not reflect true cost of living.

AnnZ [28]3 years ago

4 0

While a familiar benchmark, the number of people who know of Big Macs are not comparable to those who buy them regularly. Thus, comparing a not-as-commonly purchased product with living essentials (such as staple foods and toiletries) provides a level of disconnect that hinders the very comparison it is intended to support.

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3 years ago

When mik has an absolute advantage in the production of two goods over tommy, mik?

Vesna [10]

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3 years ago

The manager of a computer software company wishes to study the number of hours senior executives by type of industry spend at th

miskamm [114]

Answer:

Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

Explanation:

The given data is

Banking Retail Insurance

12 8 10

10 8 8

10 6 6

12 8 8

10 10 10

The results of excel are:

Anova: Single Factor

SUMMARY

Groups Count Sum Average Variance

Column 1 5 54 10.8 1.2

Column 2 5 40 8 2

Column 3 5 42 8.4 2.8

1) Let the null and alternate hypotheses be

H0: u1=u2=u3 i.e all the three means are equal and

Ha: Not all three means are equal

2) The significance level is set at ∝ =0.05

3)The test statistic to use is

F= sb²/ sw²

which has F distribution with v1= k-1 →3-1=2 and v2= n-k →15-3=12 degrees of freedom

After calculations the following table is obtained.

ANOVA

Source SS df MS F P-value F crit

of Variation

B/w Groups 22.93 2 11.467 5.733 0.01788 3.885

Within Groups 24 12 2

Total 46.93 14

4) The critical region is F ≥ F(0.05, 2,12) = 3.885

5) Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

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3 years ago

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Marina CMI [18]

Answer:

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3 years ago

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BartSMP [9]

Answer:

(B) Uncertainty avoidance.

Explanation:

Uncertainty avoidance is one of the dimensions of national culture.

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3 years ago

What are the disadvantages of using big macs to measure purchasing power​ parity? ​(check all that apply.​)?

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?