Which one of the following statements about a series of random samples of size 100 drawn from a large population known to be exponentially distributed is always correct?The distribution of the means of these samples will be exponentialThe standard deviation of the means of the samples will be the same as that of the overall populationThe means of these samples will all lie within 1% of the mean of the populationAs the number of samples taken increases, the distribution of the means of the samples tends to become more symmetric
Question
Which one of the following statements about a series of random samples of size 100 drawn from a large population known to be exponentially distributed is always correct?The distribution of the means of these samples will be exponentialThe standard deviation of the means of the samples will be the same as that of the overall populationThe means of these samples will all lie within 1% of the mean of the populationAs the number of samples taken increases, the distribution of the means of the samples tends to become more symmetric
Solution
The correct statement is: "As the number of samples taken increases, the distribution of the means of the samples tends to become more symmetric."
This is due to the Central Limit Theorem, which states that the distribution of sample means will approximate a normal distribution as the sample size increases, regardless of the shape of the population distribution. This is true even for an exponentially distributed population.
The other statements are not always correct:
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"The distribution of the means of these samples will be exponential" - This is not correct because of the Central Limit Theorem, as explained above.
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"The standard deviation of the means of the samples will be the same as that of the overall population" - This is not correct. The standard deviation of the sample means (also known as the standard error) is equal to the standard deviation of the population divided by the square root of the sample size.
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"The means of these samples will all lie within 1% of the mean of the population" - This is not necessarily true. While the sample means will tend to cluster around the population mean, there is no guarantee that they will all lie within 1% of it.
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