I If a Population Is Not Normally Distributed, the Sampling

question 24

Multiple Choice

i. If a population is not normally distributed, the sampling distribution of the sample means tends to approximate a normal distribution. ii. The Central Limit Theorem states that if the sample size n is sufficiently large, the sampling distribution of the means will be approximately normal no matter whether the population is normally distributed, skewed, or uniform.
iii. Based on the sampling distribution of the means and the central limit theorem, the sample mean can be used as a good estimator of the population mean, assuming that the size of the sample is sufficiently large.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement, but not (ii) or (iii).
• C) (ii) is a correct statement, but not (i) or (iii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Acid-Test Ratio

A financial metric that measures the ability of a company to pay off its current liabilities with its quick assets such as cash, accounts receivable, and short-term investments.

Marketable Securities

Financial instruments that can be easily converted into cash with minimal loss of value, often used for short-term investments.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.

Debt-To-Equity Ratio

A metric that shows the balance between the amount of a company's assets financed by owners' equity and that financed by debt.