The Central Limit Theorem (CLT)

question 58

Multiple Choice

The Central Limit Theorem (CLT) :

• A)applies only to samples from normal populations.
• B)applies to any population.
• C)applies best to populations that are skewed.
• D)applies only when μ and σ are known.

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Definitions:

Discretionary Policy

A type of fiscal or monetary policy that involves non-automated, active decisions by policymakers to influence economic conditions.

Time Lag

The delay between the cause or initiation of an event and its effect or outcome, often used in the context of economic policy impacts.

Economic Problem

The fundamental issue arising from the scarcity of resources relative to human wants, necessitating choices and prioritization in the allocation of resources.

Policy Change

Alterations or adjustments made by government or organizations in existing policies to address new issues or improve outcomes.