Why Is the Central Limit Theorem So Important to the Study

question 32

Multiple Choice

Why is the Central Limit Theorem so important to the study of sampling distributions?

• A) It allows us to disregard the size of the sample selected when the population is not normal.
• B) It allows us to disregard the shape of the population when n is large.
• C) It allows us to disregard the shape of the sampling distribution when the size of the population is large.
• D) It allows us to disregard the size of the population we are sampling from.

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Definitions:

Simple Interest

Interest calculated on the principal portion of a loan or deposit without compounding.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories, and meeting other short-term liabilities.

Simple Interest

Interest computed solely on the initial sum or on the outstanding part of that initial sum.

Discount

A reduction applied to the regular price of goods or services, usually to incentivize purchase.