What are Independent Events? In statistics and probability theory, independent events are two events wherein the occurrence of one event does not affect the occurrence of another event or events. The simplest example of such events is tossing two coins. The outcome of tossing the first coin cannot influence the outcome of tossing the second coin….
What is the Nominal Effective Exchange Rate (NEER)? The nominal effective exchange rate (NEER) is a form of measuring a currency’s nominal exchange rate relative to a basket of other currencies using an unadjusted weighted-average calculation. NEER is also sometimes referred to as the “trade-weighted currency index.” NEER may be adjusted to account for the…
What are Mutually Exclusive Events? In statistics and probability theory, two events are mutually exclusive if they cannot occur at the same time. The simplest example of mutually exclusive events is a coin toss. A tossed coin outcome can be either head or tails, but both outcomes cannot occur simultaneously. Mutually exclusive events are commonly…
What is the Net International Investment Position (NIIP)? The Net International Investment Position (NIIP) is the balance value when external assets are adjusted for external liabilities. The external assets are the foreign assets owned by the country’s government, companies, and citizens. The external liabilities are the foreigners-owned domestic assets. The Net International Investment Position measures…
What are Indirect Taxes? Indirect taxes are basically taxes that can be passed on to another entity or individual. They are usually imposed on a manufacturer or supplier who then passes on the tax to the consumer. The most common example of an indirect tax is the excise tax on cigarettes and alcohol. Value Added…
What are Direct Taxes? Direct taxes are one type of taxes an individual pays that are paid straight or directly to the government, such as income tax, poll tax, land tax, and personal property tax. Such direct taxes are computed based on the ability of the taxpayer to pay, which means that the higher their…
What is a Frequency Polygon? A frequency polygon is a visual representation of a distribution. The visualization tool is used to understand the shape of a distribution. Essentially, the frequency polygon indicates the number of occurrences for each distinct class in the dataset. In addition, the graph may be used to show the cumulative frequency…
What is Cumulative Frequency Distribution? Cumulative frequency distribution is a form of frequency distribution that represents the sum of a class and all classes below it. Remember that frequency distribution is an overview of all distinct values (or classes of values) and their respective number of occurrences. The cumulative frequency distribution is extremely helpful when…
What is a Bell Curve? A bell curve is the informal name of a graph that depicts a normal probability distribution. The term obtained its name due to the bell-shaped curve of the normal probability distribution graph. However, the term is not quite correct because the normal probability distribution is not the only probability distribution…
