True or false The Central Limit Theorem states that sample m

True or false: The Central Limit Theorem states that sample means, drawn from a normally distributed population, will be normally distributed.

True or false: Suppose Nike\'s average stock price this year is $15.00 with a standard deviation of $3.00, and Under Armour\'s average stock price this year is $24.00 with a standard deviation of $4.00. According to this data, Nike\'s stock price is more consistent that Under Armour\'s stock price.

True or false: A z-score measures the number of standard deviations a value is from its median.

Solution

1. True - sample mean or any sample statistic

2. The standard deviation of Nike\'s average stock price is less than that of Under Armour\'s, hence they are more coosistent (less variable) than the other.

3. False - A z-score measures the number of standard deviations a value is from its mean.