Suppose It Is Known That the Income Distribution in a Particular

question 3

Multiple Choice

Suppose it is known that the income distribution in a particular region is right-skewed and bimodal. If bank economists are interested in estimating the mean income, which of the following is true?

• A) Provided that the sample size is sufficiently large, the sampling distribution for y will be approximately Normal with a mean equal to the population mean.
• B) Provided that the sample size is sufficiently large, the sampling distribution for y will be approximately Normal with a standard deviation equal to the population standard deviation.
• C) The sampling distribution will also be right-skewed for large sample sizes.
• D) The standard deviation of the sampling distribution for y will be proportionally larger than the population standard deviation, depending on the size of the sample.
• E) The sampling distribution will also be bimodal for large sample sizes.

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Definitions:

Direct Labor

The labor costs directly associated with the production of goods, including wages for workers who are involved in the actual manufacturing process.

Allocation Base

A measure or statistic used to distribute indirect costs to different cost objects, such as departments or products.

Budgeted Overhead

The estimated amount of all indirect costs associated with the production process or project.

Single Plantwide

A method used to allocate manufacturing overhead to products, using a single overhead rate for the entire manufacturing plant.