Provide an Appropriate Response

question 72

Essay

Provide an appropriate response.
-The typical computer random-number generator yields numbers in a uniform distribution between 0 and 1, with a mean of 0.500 and a standard deviation of 0.289. Consider the following two problems, which appear at a glance to be very similar. One can be solved using the Central Limit Theorem. Which one and why? (a)Suppose a sample of size 50 is randomly generated. Find the probability that the mean is below 0.300. (b)Suppose a sample of size 15 is randomly generated. Find the probability that the mean is below 0.300.

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Definitions:

Liability Account

An account on a company's balance sheet representing debts or obligations that the company owes to others.

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and recorded, usually when it is earned and realizable.

Cash

Liquid currency and assets readily convertible to cash that are used by businesses to conduct transactions, pay expenses, and provide financial buffers.

Deferrals

Transactions where the recognition of revenue or expenses is postponed to future accounting periods.