Author Question: Explain the central-limit theorem and discuss why it is useful to marketing ... (Read 92 times)

jessicacav · **on:** Jun 28, 2018

Explain the central-limit theorem and discuss why it is useful to marketing researchers.

Question 2

Companies typically assess their corporate strengths relative to their competitors.
a. True
b. False
Indicate whether the statement is true or false

InfiniteSteez · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

The central-limit theorem is a theory that states as the sample size increases, the distribution of sample means of size n, randomly selected, approaches a normal distribution. It works regardless of the shape of the original population distribution. In other words, the distribution of averages quickly approaches normal as sample size increases. This theoretical knowledge about distributions can be used to solve two practical marketing research problems: estimating parameters and determining sample size.

Answer to Question 2

True