CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

Statisticians use the central limit theorem when studying sampling distributions because ______

A. the size of the sample is not important when the population is approximately normally distributed.
B. the shape of the population is not important when the sample size is greater than 30.
C. the shape of the sample distribution is not important when the population size is greater than 30.
D. the shape of the population distribution is important when the sample size is less than 30.
Correct Answer: B

User Contributed Comments 7

User Comment
Gina shape of the population distribution... vs shape of the population?
vincenthuang what's the differece between B and D
From the LOS " No matter what the shape of the orginal distribution" seems like D is close.
minna the central limit theorem does not say anything about sample size smaller than 30. So D is incorrect.
nufan It is not because it is true that it answer why statisticians use the Central Limit Theorem (..) .
amamed213 why not A ?
Jurrens it's not A bc the size of the sample is still important.
johntan1979 No, A is correct but not the answer to why statisticians use CLT.
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