- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 10. Sampling and Estimation
- Subject 3. The Central Limit Theorem

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**CFA Practice Question**

The central limit theorem states that the sampling distribution of sample means is ______.

II. normal regardless of the population distribution

III. normal if the population is normal

IV. approximately normal if samples of size 30 or more are taken

I. normal regardless of the sample size

II. normal regardless of the population distribution

III. normal if the population is normal

IV. approximately normal if samples of size 30 or more are taken

A. I and II

B. III and IV

C. II and IV

**Explanation:**No matter what the shape of the original distribution is, the x-bar approaches a normal distribution as the sample size increases.

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**User Contributed Comments**
3

User |
Comment |
---|---|

jayj001 |
Would II hold if n<30? |

superbus |
no |

dbalakos |
approximately normal in II or not? |