Suppose Students' Ages Follow a Skewed Right Distribution with a Mean

question 45

Multiple Choice

Suppose students' ages follow a skewed right distribution with a mean of 21 years old and a standard deviation of 2 years. If we randomly sample 450 students, which of the following statements about the sampling distribution of the sample mean age is incorrect?

• A) The standard deviation of the sampling distribution is equal to 2 years.
• B) The shape of the sampling distribution is approximately normal.
• C) The mean of the sampling distribution is approximately 21 years old.
• D) All of the above statements are correct.

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Definitions:

Simple Interest

Simple interest is a method of calculating the interest charge on a loan based on the original principal balance without compounding.

Rate of Return

The financial improvement or decline in an investment across a particular period, indicated as a percentage of the investment’s entry cost.

Interest

The fee associated with the right to borrow funds, usually indicated as a yearly percentage rate.

Compounded Annually

This refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.