The Central Limit Theorem states that:
A
All data is normally distributed
B
The distribution of sample means approaches a normal distribution as sample size increases, regardless of population shape
C
Larger samples have more error
D
Only small samples are useful
✓ Correct Answer: Option B
CLT: for sufficiently large n (typically ≥30), sampling distribution of the mean is approximately normal with μ_x̄ = μ and σ_x̄ = σ/√n. Fundamental to inference and confidence intervals.
💡 Why is B) the correct answer?
The correct answer to the question "The Central Limit Theorem states that:" is Option B: The distribution of sample means approaches a normal distribution as sample size increases, regardless of population shape.
The other options — A) All data is normally distributed, C) Larger samples have more error, D) Only small samples are useful — are incorrect for this Pre-MBA Exam Prep question. As explained above: CLT: for sufficiently large n (typically ≥30), sampling distribution of the mean is approximately normal with μ_x̄ = μ and σ_x̄ = σ/√n. Fundamental to inference and confidence intervals.
📚 About This Pre-MBA Exam Prep Practice Question
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