The Central Limit Theorem Is Important in Statistics Because

question 26

Multiple Choice

The Central Limit Theorem is important in statistics because

• A)for a large n,it says the population is approximately normal.
• B)for any population,it says the sampling distribution of the sample mean is approximately normal,regardless of the sample size.
• C)for a large n,it says the sampling distribution of the sample mean is approximately normal,regardless of the shape of the population.
• D)for any sized sample,it says the sampling distribution of the sample mean is approximately normal.

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Definitions:

Maximum Potential Value

The highest theoretical value an investment or business project can achieve under optimal conditions.

Simulation Analysis

A method that uses a model to replicate complex systems and predict their behavior under different scenarios.

Scenario Analysis

A method of examining potential future occurrences by evaluating different possible results or scenarios.

Sensitivity Analysis

A strategy for determining the influence that different independent variable levels have on a targeted dependent variable, under predefined assumptions.