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.

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Definitions:

Days' Sales In Inventory

A financial metric that measures the average number of days it takes for a company to turn its inventory into sales.

Average Inventory

Average inventory is a calculation that estimates the value or number of goods a company has in stock over a specific period, often used to assess inventory turnover.

Inventory Management

A process in businesses that oversees the flow of goods from manufacturers to warehouses and from these facilities to point of sale.

Specific Identification Method

An inventory costing method that assigns costs to individual items or batches of products, accurately tracking inventory costs.