What Does the Central Limit Theorem State

question 14

Multiple Choice

What does the central limit theorem state?

• A) As sample size increases, the sample distribution better reflects the population distribution.
• B) As sample size decreases, the sample distribution better reflects the population distribution.
• C) As population size increases, the population distribution better reflects the sample distribution.
• D) As population size decreases, the population distribution better reflects the sample distribution.

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Definitions:

Tax Base

The amount that is attributed to an asset or liability for tax purposes.

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For tax purposes refers to the considerations and rules applied in the calculation and reporting of taxes owed or refunds due to governing tax authorities.

Current Tax Liability

The amount of income taxes a company expects to pay within the current year, based on its taxable income.

Tax Payable

The amount of tax liability a company owes to the taxing authorities at a point in time.