The Central Limit Theorem

question 34

Multiple Choice

The central limit theorem

• A)states conditions under which a variable involving the sum of Y1,... ,Yn i.i.d.variables becomes the standard normal distribution.
• B)postulates that the sample mean is a consistent estimator of the population mean .
• C)only holds in the presence of the law of large numbers.
• D)states conditions under which a variable involving the sum of Y1,... ,Yn i.i.d.variables becomes the Student t distribution.

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Definitions:

No-Par Shares

Stocks issued without a par value, meaning the company does not assign a formal value to them, but they still represent ownership in the company.

Shareholder

An individual or organization that owns shares in a corporation and has potential voting rights.

Fair Market Value

The price at which an asset would sell under normal conditions, where both buyer and seller are informed and willing.

Voting Trust

An arrangement where shareholders' voting rights are transferred to a trustee, usually for the purpose of ensuring unified action or to resolve conflicts.