The Central Limit Theorem Is Important in Statistics Because

question 26

Multiple Choice

The Central Limit Theorem is important in statistics because

• A)for a large n,it says the population is approximately normal.
• B)for any population,it says the sampling distribution of the sample mean is approximately normal,regardless of the sample size.
• C)for a large n,it says the sampling distribution of the sample mean is approximately normal,regardless of the shape of the population.
• D)for any sized sample,it says the sampling distribution of the sample mean is approximately normal.

---

Definitions:

Asset Allocation

The process of spreading investments among various categories of assets (e.g., stocks, bonds, real estate) to optimize risk and return.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.

Expected Return

The mean of the probability distribution of possible returns for an investment, taking into account all known risks and opportunities.