As a General Rule, the Normal Distribution Provides a Good

question 124

Multiple Choice

As a general rule, the normal distribution provides a good approximation to the sampling distribution of the sample proportion only if:

• A) the sample size n is greater than 30
• B) the sample size n is greater than 100
• C) the population proportion p is greater than 0.50
• D) the underlying population has a small standard deviation and n is large
• E) np and n(1-p) are both greater than 5

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Definitions:

Premium

The amount paid for a product or service beyond its basic cost, often relating to insurance policies, bonds, or options contracts.

Monetary Assets

Assets that hold a fixed monetary value, including cash, currency, and receivables, and are not significantly affected by inflation or currency fluctuations.

Determinable Amount

A financial term referring to an amount that can be objectively measured or accurately estimated.

Liabilities

Financial obligations or debts that an entity is required to pay to another entity in the future.