The Accuracy of the Approximation of with a Normal

question 101

Short Answer

The accuracy of the approximation of with a normal distribution depends on the probability distribution of the ____________________ and on the sample ____________________.

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Definitions:

Income Effect

The fluctuation in income for either an individual or the economy and its influence on the demand levels for certain goods or services.

Substitution Effect

The economic principle that as prices rise, consumers will replace more expensive items with less costly alternatives.

Marginal Utility

The extra contentment a customer obtains by using an additional unit of a product or service.

Total Utility

The aggregate level of satisfaction or benefit that a consumer derives from consuming a particular quantity of goods or services.