Question

Your mayor just announced that the local unemployment rate dropped last month from the prior month. it went from 10.5% to 10.4%. is this a significant drop? explain.

Answer 1

It is a drop, but by only 0.1%. It isn't a significant drop. The average city has a population of about 20,000 people. 10.5 percent of 20,000 is 2,100. 10.4 percent of 20,000 is 2,080. So, it really isn't a significant drop.
Even if a city had a much larger population, it would still be a very small drop compared to the overall population.