The Central Limit Theorem Is Important in Statistics Because

question 111

Multiple Choice

The Central Limit Theorem is important in statistics because

• A) for any sized sample, it says the sampling distribution of the sample mean is approximately normal.
• B) for any population, it says the sampling distribution of the sample mean is approximately normal, regardless of the sample size.
• C) for a large n, it says the population is approximately normal.
• D) for a large n, it says the sampling distribution of the sample mean is approximately normal, regardless of the shape of the population.

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Definitions:

Demand

The desire of consumers to purchase goods and services at given prices, which is a fundamental concept in economics determining market dynamics.

Long-Run Average Cost Curve

A graphical representation showing the minimum average cost at which any output level can be produced when all inputs are variable in the long run.

Short-Run

A timeframe in economics where at least one input, such as capital or labor, is fixed, limiting the ability of businesses to adjust production immediately.

Tangent

In economics, it represents a point where two curves touch, often used in optimization problems to find equilibrium points.