Why Is the Central Limit Theorem So Important to the Study

question 84

Multiple Choice

Why is the Central Limit Theorem so important to the study of sampling distributions?

• A)It allows us to disregard the size of the sample selected when the population is not normal.
• B)It allows us to disregard the shape of the sampling distribution when the size of the population is large.
• C)It allows us to disregard the size of the population we are sampling from.
• D)It allows us to disregard the shape of the population when n is large.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the accounting records but not yet cleared or cashed by the bank.

Double Payment

A financial error where a payment is mistakenly sent or processed twice for the same invoice or obligation.

Checks Cleared

The process by which banks settle transactions, transferring money from the check writer's account to the beneficiary's account once the check is presented for payment.

Bank Reconciliation

The practice of aligning and scrutinizing numbers from financial records with the ones on a bank statement to guarantee they match.