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FinOpMgt 250
Exam 1 Review
Vocabulary
Sampling Distributions
Standard Error
– Standard deviation of the sampling distribution
Central Limit Theorem
– The sampling distribution of the mean of a random sample drawn from any
population is approximately normal for a sufficiently large sample size. The larger sample size, the more
closely the sampling distribution of X
̅
will resemble the normal distribution.
Sampling Distribution of the Sample Mean
– If X is normal, X
̅
is normal. If X is nonnormal, X
̅
is
approximately normal for sufficiently larger sample sizes. The definition of “sufficiently large” depends
on the extent of nonnormality of X.
Introduction to Estimation
Point Estimator
– Draws inferences about a population by estimating the value of an unknown parameter
using a single value or point
Interval Estimator
– Draws inferences about a population by estimating the value of an unknown
parameter using an interval
Unbiased Estimator
– An estimator of a population whose expected value is equal to that parameter
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This note was uploaded on 03/21/2009 for the course FINOPMGT 250 taught by Professor Kouzehkanani during the Spring '08 term at UMass (Amherst).
 Spring '08
 KOUZEHKANANI

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