What Conditions Are Required by the Central Limit Theorem Before

question 110

Multiple Choice

What conditions are required by the central limit theorem before a confidence interval of the population mean may be created?

• A) The underlying population must be normally distributed.
• B) The underlying population must be normally distributed if the sample size is 30 or more.
• C) The underlying population need not be normally distributed if the sample size is 30 or more.
• D) The underlying population need not be normally distributed if the population standard deviation is known.

---

Definitions:

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.

Disposable Income

The financial resources families have for expenditures and savings after income taxes are removed.