As a General Rule, the Normal Distribution Is Used to Approximate

question 63

True/False

As a general rule, the normal distribution is used to approximate the sampling distribution of the sample proportion only if both $n \hat p$ and $n \hat { q }$ are at least five ( $\hat { q }$ = 1 - $\hat { p }$ ).

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Definitions:

Fringe Firms

Fringe firms are smaller companies in a market that compete alongside the larger, dominant firms, typically having a minimal market share.

Competitive Firms

Companies that operate in a market where no single producer or consumer has the market power to influence prices significantly.

Oligopolistic Market Outcomes

In an oligopolistic market structure, outcomes often include limited competition, price stability or price wars, and potential for collusion among the few dominant firms.

Prisoners' Dilemma

A fundamental problem in game theory showing why two individuals might not cooperate, even if it appears that it is in their best interest to do so.