Suppose It Is Known That the Income Distribution in a Particular

question 123

Multiple Choice

Suppose it is known that the income distribution in a particular region is right-skewed and bi-modal. If bank economists are interested in estimating the mean income, which of the following is true?

• A) Provided that the sample size is sufficiently large, the sampling distribution for will be approximately normal with a mean equal to the population mean that they wish to estimate.
• B) The sampling distribution will also be right-skewed for large sample sizes.
• C) The standard deviation of the sampling distribution for will be proportionally larger than the population standard deviation, depending on the size of the sample.
• D) The sampling distribution will be left-skewed.

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Definitions:

Old Accounts Receivables

Outstanding invoices a company has yet to collect from customers past the due date.

Percentage of Receivables Basis

An accounting method used to estimate the amount of receivables that will not be collected by calculating a percentage of the total receivables.

Income Statement Relationships

The connections between various financial items on the income statement, illustrating how sales revenue affects net income.

Nontrade Receivables

Monetary claims against others that cannot be classified as trade receivables, often arising from financial transactions.