The Fact That the Sampling Distribution of the Sample Mean

question 77

Multiple Choice

The fact that the sampling distribution of the sample mean can be approximated by a normal probability distribution whenever the sample size is large is based on the _____.

• A) central limit theorem
• B) fact that there are tables of areas for the normal distribution
• C) assumption that the population has a normal distribution
• D) normal probability theorem

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Definitions:

Net Income

What remains of a company’s revenue after all expenses, including taxes and costs, have been removed.

Balance Sheet Equation

An accounting formula representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Retained Earnings

The portion of net income not distributed as dividends to shareholders, but retained by the company to reinvest in its business or to pay debt.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, a key indicator of financial health.