If Two Independent Large Samples Are Selected from Two Populations

question 7

Multiple Choice

If two independent large samples are selected from two populations, the sampling distribution of the difference between the two sample means _____.

• A) can be approximated by a Poisson distribution
• B) will have a variance of 1
• C) can be approximated by a normal distribution
• D) will have a mean of 1

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Definitions:

Back-end Loads

Fees paid by investors when selling mutual fund shares, typically decreasing over time the longer the shares are held.

Hedge Fund

A private investment fund that employs a variety of strategies to earn active return, or alpha, for their investors, often involving leverage, derivatives, and short selling.

SEC Regulation

A set of rules and laws enacted by the U.S. Securities and Exchange Commission to regulate securities markets and protect investors.

Institutional Investors

Institutional investors are large organizations, like pension funds and mutual funds, that invest substantial amounts of money in securities and real estate.