The Sampling Distribution of the Sample Means Is Close to the Normal

question 86

True/False

The sampling distribution of the sample means is close to the normal distribution only if the distribution of the population is close to normal.

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Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, used in finance to measure the volatility of an investment.

Risk-Free Asset

Risk-Free Asset is an investment with no risk of financial loss, often represented by government bonds of stable economies.

Asset Allocation

Allocating a portfolio across broad asset classes such as stocks versus bonds.

Risk-Free Asset

An investment with a guaranteed return and no risk of loss, often exemplified by government bonds of stable countries.