The Central Limit Theorem Ensures That the Sampling Distribution of the Sample

question 72

True/False

The Central Limit Theorem ensures that the sampling distribution of the sample mean approaches a normal distribution as the sample size increases.

---

Definitions:

Payback Period

The length of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Salvage

The prognosticated residual valuation of an asset upon reaching the end of its utility.

Profitability Index

A financial metric that calculates the relationship between the present value of future cash flows and the initial investment cost.

Preference Rule

A guideline or rule that prioritizes alternatives based on certain criteria, often used in decision-making processes.