Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 13.3, Problem 13P
Summary Introduction

Interpretation:

Probability of exceeded budget.

Concept Introduction:

Central Limit Theorem states that when a very large sample is taken for evaluation of random variables, it tends to follow normal distribution pattern. Even if part of the sample size does not follow.

It also states that the sampling distribution of any statistic will be normal or nearly normal, if the sample size is large enough.

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