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What does the central limit theorem state?

  1. A The distribution of sample means approaches normal as sample size increases, regardless of the population distribution
  2. B All data is normally distributed
  3. C Samples must be large to be valid
  4. D Variance decreases with sample size
Answer

The distribution of sample means approaches normal as sample size increases, regardless of the population distribution

It is what justifies using normal-based confidence intervals for means even when the underlying data is skewed.

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