A Theorem That Allows Us to Use the Normal Probability

question 67

Multiple Choice

A theorem that allows us to use the normal probability distribution to approximate the sampling distribution of sample means and sample proportions whenever the sample size is large is known as the

• A)approximation theorem
• B)normal probability theorem
• C)central limit theorem
• D)central normality theorem

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often paying fixed dividends.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in accounting to value inventory.

Common Shares

Units of ownership interest or equity in a corporation that entitle their holder to a share of the corporation's earnings and give them the right to vote.