Random Samples of Size 17 Are Taken from a Population

question 30

Multiple Choice

Random samples of size 17 are taken from a population that has 200 elements, a mean of 36, and a standard deviation of 8. Which of the following best describes the form of the sampling distribution of the sample mean for this situation?

• A) Approximately normal because the sample size is small relative to the population size
• B) Approximately normal because of the central limit theorem
• C) Exactly normal
• D) None of these alternatives is correct.

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Definitions:

Normal Return

The minimum profit necessary for a company to remain viable in its industry, often considered the opportunity cost of capital.

Own Capital

The value of the assets owned by a company or individual that are used in the production process or for investment purposes.

Short Run

A period in which at least one of a firm's inputs is fixed, limiting the firm’s ability to increase production.

Industry Entry

The act of beginning or entering into a specific market or field of business.