Suppose it is known that the income distribution in a particular region is right-skewed and bi-modal. If bank economists are interested in estimating the mean income, which of the following is true?
A) Provided that the sample size is sufficiently large, the sampling distribution for will be approximately normal with a mean equal to the population mean that they wish to estimate.
B) The sampling distribution will also be right-skewed for large sample sizes.
C) The standard deviation of the sampling distribution for will be proportionally larger than the population standard deviation, depending on the size of the sample.
D) The sampling distribution will be left-skewed.

Question

Quizplus · Accepted Answer

The Central Limit Theorem states that, given a sufficiently large sample size, the sampling distribution of the mean will be approximately normal, regardless of the shape of the population distribution. This means that even if the income distribution is right-skewed and bi-modal, the sampling distribution of the mean will approximate a normal distribution with a mean equal to the population mean.

Suppose It Is Known That the Income Distribution in a Particular