Extreme values can distort the mean and affect hypothesis tests; the impact lessens with larger sample sizes due to the Central Limit Theorem.
True. Extreme values in a sample can distort the mean and consequently impact hypothesis tests of the mean. When extreme values are present in a small sample, they exert a significant influence on the results, making them less reliable. As the sample size increases, extreme values have a lesser effect as the distribution becomes more normal due to the Central Limit Theorem.
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