- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 7. Estimation and Inference
- Subject 2. The Central Limit Theorem and Inference
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.
User Contributed Comments 3
| User | Comment |
|---|---|
| jayj001 | Would II hold if n<30? |
| superbus | no |
| dbalakos | approximately normal in II or not? |