For the Population of One Town, the Number of Siblings $\bar { x }$

question 48

Multiple Choice

For the population of one town, the number of siblings is a random variable whose relative frequency histogram has a reverse J-shape. Let $\bar { x }$ denote the mean number of siblings for a random sample of size 30. For samples of size 30, which of the following statements concerning the sampling distribution of the mean is true?

• A)The distribution of \(\bar { x }\) has a reverse J-shape.
• B) \(\bar { x }\) is approximately normally distributed.
• C) \(\bar { x }\) is normally distributed.
• D) None of the above statements is true.

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Definitions:

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.