comparability

Examples of comparability in the following topics:

• Comparatives and Superlatives

• Defining Comparative Advantage

  • A country has a comparative advantage over another when it can produce a good or service at a lower opportunity cost.
  • However, the accompanying table shows that Chiplandia has a comparative advantage in computer chip production, while Entertainia has a comparative advantage in the production of CD players.
  • It is important to distinguish between comparative advantage and competitive advantage.
  • In the context of international trade, we more often discuss comparative advantage.
  • Chiplandia has a comparative advantage in producing computer chips, while Entertainia has a comparative advantage in producing CD players.

• Absolute Advantage Versus Comparative Advantage

  • Absolute advantage refers to differences in productivity of nations, while comparative advantage refers to differences in opportunity costs.
  • Absolute advantage compares the productivity of different producers or economies.
  • Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another.
  • Absolute advantage is important, but comparative advantage is what determines what a country will specialize in.
  • Country A has an absolute advantage in making both food and clothing, but a comparative advantage only in food.

• Comparative Psychology

  • Comparative psychology is the scientific study of animal behavior and mental processes, which can lead to a deeper and broader understanding of human psychology.
  • Comparative psychology is sometimes assumed to emphasize cross-species comparisons, including those between humans and animals.
  • Research in comparative psychology is usually studied under controlled laboratory experiments in order to discover general principles of behavior.
  • A wide variety of species have been studied by comparative psychologists.
  • A wide variety of species have been studied by comparative psychologists in order to gain insight into the behavior and mental processes of nonhuman animals.

• Industry Comparisons

  • While ratio analysis can be quite helpful in comparing companies within an industry, cross-industry comparisons should be done with caution.
  • However, while ratios can be quite helpful in comparing companies within an industry and even across some similar industries, comparing ratios of companies across different industries may not be helpful and should be done with caution .
  • However, in terms of ratio analysis and comparing companies, it is most helpful to consider whether the companies being compared are comparable in the financial metrics being evaluated in the ratios.
  • Valuation using multiples involves estimating the value of an asset by comparing it to the values assessed by the market for similar or comparable assets in the peer group.
  • Describe how valuation methodologies are used to compare different companies in different sectors

• Benchmarking

  • Comparing the financial ratios of a company to those of the top performer in its class is a type of benchmarking.
  • Financial ratios allow for comparisons and, therefore, are intertwined with the process of benchmarking, comparing one's business to that of others or of the same company at a different point in time.
  • In many cases, benchmarking involves comparisons of one company to the best companies in a comparable peer group or the average in that peer group or industry.
  • The most useful comparisons can be made when metrics definitions are common and consistent between compared units and over time.
  • From a management perspective, benchmarking using ratio analysis may be a way for a manager to compare their company to peers using externally recognizable, quantitative data.

• Comparing Two Sample Averages

  • Student's t-test is used in order to compare two independent sample means.
  • In the t-test comparing the means of two independent samples, the following assumptions should be met:
  • Each of the two populations being compared should follow a normal distribution.
  • If using Student's original definition of the t-test, the two populations being compared should have the same variance.
  • The data used to carry out the test should be sampled independently from the populations being compared.

• Statistical Literacy

  • A research design to compare three drugs for the treatment of Alzheimer's disease is described here.
  • For a between-subjects design, the subjects in the different conditions would be compared after two years.
  • For a within-subjects design, the change in subjects' scores in the different conditions would be compared.

• Relationship Between Specialization and Trade

  • The traders decide on whether they should export or import goods depending on comparative advantages.
  • Rather than absolute advantage, comparative advantage is the driving force of specialization.
  • In sum, the producer that has a smaller opportunity cost will have the comparative advantage.
  • It follows that Bob will have a comparative advantage in the production of mustard.
  • Tom has the comparative advantage in producing ketchup, while Bob has the comparative advantage in producing mustard.

• Using Two Samples

  • To compare two means or two proportions, one works with two groups.
  • Studies often compare two groups.
  • For example, studies compare various diet and exercise programs.
  • You will compare two means or two proportions to each other.
  • To compare two means or two proportions, one works with two groups.