Which Theory States That as Sample Size Increases,the Distribution of Sample

question 6

Multiple Choice

Which theory states that as sample size increases,the distribution of sample means of size n,randomly selected,approaches a normal distribution?

• A)prospect theory
• B)central-limit theorem
• C)dispersion theory
• D)entropy

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a company's cost of capital in which each category of capital is proportionately weighted.

Corporate WACC

The weighted average cost of capital for a corporation, reflecting the cost of its equity and debt financing.

IRR

Internal Rate of Return is a metric used in financial analysis to estimate the profitability of potential investments, representing the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Project Risk

The potential for encountering unknown or unforeseen factors that can lead to project failure, such as cost overruns, delays, and scope creep.