As a General Rule, One Can Use the Normal Distribution

question 261

True/False

As a general rule, one can use the normal distribution to approximate a binomial distribution whenever n(π - 1) is at least 5.

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Definitions:

Output

The amount of products or services that a company, sector, or nation generates over a specific period of time.

Total Fixed Cost

The sum of all costs that do not change with the level of output, even if that output is zero.

Output Level

The quantity of goods or services produced by a firm or industry at a given time.

Average Variable Cost (AVC)

The total variable cost divided by the quantity of output produced. It represents the variable cost of producing each additional unit.