The Central Limit Theorem Is Considered Powerful in Statistics Because

question 47

Multiple Choice

The Central Limit Theorem is considered powerful in statistics because __________.

• A)it works for any sample size provided the population is normal
• B)it works for any sample provided the population distribution is known
• C)it works for any population distribution provided the population mean is known
• D)it works for any population distribution provided the sample size is sufficiently large

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Definitions:

Current Salvage Value

The estimated value that an asset can be sold for at the end of its useful life in its present condition.

Profitability Index

A measure comparing the present value of future cash flows to the initial investment, used to assess the attractiveness of a project.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, important in assessing the value of investments.

Initial Investment

refers to the initial amount of money invested in a project or venture to get it started.