According to the Central Limit Theorem Used in Inferential Statistics

question 39

Multiple Choice

According to the central limit theorem used in inferential statistics,

• A)the bigger your sample,the better your results.
• B)when drawing many random samples,the samples form a normal curve with the highest point of the distribution equal to the population parameter.
• C)the best estimate of population parameters comes when one uses the inverse square of the z-probability distribution.
• D)90 percent of all samples drawn in a simple random manner will contain some error.
• E)in order to infer from a sample to a population,the sampling error must equal zero.

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Definitions:

Financial Lease

A type of lease in which the lessee has use of the asset for a significant portion of its useful life, and the lease payments are designed to cover the lessor's initial costs.

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Relevant Discount Rate

The interest rate used to discount future cash flows to their present value to account for the risk and time value of money in decision making.

Cost of Borrowing

The total charges, including interest and any other fees, that a borrower incurs when taking out a loan.