CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

A statistician is calculating a confidence interval but the standard deviation of the sampled population is unknown. It is acceptable to use the sample standard deviation in place of the population standard deviation when ______

I. the sample distribution is normally distributed.
II. the sample size is greater than 30.
III. the sample distribution behaves according to the central limit theorem.
A. I and II
B. I and III
C. I, II and III
Explanation:

User Contributed Comments 2

User Comment
CFAToad The sample size always behaves according to the central limit theorem, even when N is below 30.
Steff Don't agree with III without the knowledge either that the sample size is >= 30 or the distribution is normal distributed. Every distribution behaves according to the central limit theorem but with a sample size < 30 it is not approximately normal distributed. Other opinions?
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