CFA Practice Question
Which of the following is (are) true about the Central Limit Theorem?
II. It cannot be applied if the population distribution is highly skewed.
III. It implies that the mean of the population equals the mean of the means of all possible samples.
I. It cannot be applied if the population distribution is non-normal.
II. It cannot be applied if the population distribution is highly skewed.
III. It implies that the mean of the population equals the mean of the means of all possible samples.
A. I & II.
B. I, II, & III
C. III only
Explanation: The Central Limit Theorem states that for a population with mean M and variance S, a sample of large size n has a sampling distribution of mean which is approximately normal with mean M and variance S/n.
User Contributed Comments 1
| User | Comment |
|---|---|
| chandsingh | I would have definitely chosen differently if they had the word 'large' in there |