💼 Pre-MBA Exam Prep

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

This 3-level Pre-MBA Exam Prep question from the Statistics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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