The Central Limit Theorem

question 59

Multiple Choice

The Central Limit Theorem:

• A) is the theoretical foundation of the c-chart.
• B) states that the average of assignable variations is zero.
• C) allows managers to use the normal distribution as the basis for building some control charts.
• D) states that the average range can be used as a proxy for the standard deviation.
• E) controls the steepness of an operating characteristic curve.

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as a profit from financial investments.

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Confidence

The degree to which one can be certain or believe in a finding, result, or proposition, often used in the context of statistical conclusions.