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    Central Limit Theorem

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    Israel Oyebanji
    The central limit theorem specifies that as sample size increases, the sampling distribution of the sample means will tend toward a normal distribution, regardless of the shape of the population distribution. According to the central limit theorem, the mean of the sampling distribution equals the population mean, and the standard deviation of the sampling distribution equals the population standard deviation divided by the square root of the sample size. The central limit theorem allows us to use normal distribution properties to calculate probabilities involving sample means.

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    Central Limit Theorem

    Uploaded by

    Israel Oyebanji
    25 views19 pages
    The central limit theorem specifies that as sample size increases, the sampling distribution of the sample means will tend toward a normal distribution, regardless of the shape of the population distribution. According to the central limit theorem, the mean of the sampling distribution equals the population mean, and the standard deviation of the sampling distribution equals the population standard deviation divided by the square root of the sample size. The central limit theorem allows us to use normal distribution properties to calculate probabilities involving sample means.

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    Central Limit Theorem

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    The central limit theorem specifies that as sample size increases, the sampling distribution of the sample means will tend toward a normal distribution, regardless of the shape of the population distribution. According to the central limit theorem, the mean of the sampling distribution equals the population mean, and the standard deviation of the sampling distribution equals the population standard deviation divided by the square root of the sample size. The central limit theorem allows us to use normal distribution properties to calculate probabilities involving sample means.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views19 pages

    Central Limit Theorem

    Uploaded by

    Israel Oyebanji
    The central limit theorem specifies that as sample size increases, the sampling distribution of the sample means will tend toward a normal distribution, regardless of the shape of the population distribution. According to the central limit theorem, the mean of the sampling distribution equals the population mean, and the standard deviation of the sampling distribution equals the population standard deviation divided by the square root of the sample size. The central limit theorem allows us to use normal distribution properties to calculate probabilities involving sample means.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 19

    Central Limit Theorem

    The mean of the distribution of sample


    means (SRS – simple random sample)
    The standard deviation of the
    distribution of sample means
    These figures illustrate the sampling distributions of sample
    means based on different sample sizes:

    (a) n = 1
    (b) n = 10
    (c) n = 20
    (d) n = 70
    No matter the shape of the population, the
    distribution of x-bars tends toward Normality
    Central Limit Theorem - Summary

     specifies a theoretical distribution


     formulated by the selection of all possible random samples of a fixed
    size n
     a sample mean is calculated for each sample and the distribution of
    sample means is considered
    The mean and standard deviation of
    the samples means

     The mean of the sample means is equal to the mean of the


    population from which the samples were drawn.
    𝜇𝑥ҧ = 𝜇
     The standard deviation of the samples means is s divided by the
    square root of n.
    𝜎
    𝜎𝑥ҧ = 𝑛
    Implications of the CLT

     If the sample is normal, then the sampling distribution of the means will also
    be normal, no matter the sample size.
     When the sample population is approximately symmetric, the distribution
    becomes approximately normal for relatively small values of n (as small as
    15).
     When the sample population is skewed, the sample size must be larger
    (i.e., 30 or more) before the sampling distribution of means becomes
    approximately normal.
    Let’s visualize CLT

    https://vimeo.com/75089338
    As an example, say that we find a school that has 1200 students, with exactly 200
    students each in grades 7 through 12. The population distribution is, as the following
    figure shows, definitely not normal.
     We take a sample of 25 students and calculate the mean grade level for
    the sample, which we find to be 9.52. We then take another sample and
    find that its mean is 9.32.
     By the nature of random sampling, we will get a slightly different result
    each time we take a new sample. For example, the following table shows
    the mean we get from 10 separate samples, each of size n = 25, drawn
    from the population.
    population. means across 1,000 samples would look like the following.
    Example

    A certain brand of tires has a mean life of 25,000 miles with a standard
    deviation of 1600 miles.

    What is the probability that the mean life of 64 tires is less than 24,600 miles?
    Solution

    The sampling distribution of the means has a mean of 25,000 miles (the
    population mean)
    m = 25000 mi.

    and a standard deviation (i.e.. standard error) of:


    1600/8 = 200
    Convert 24,600 mi. to a z-score and use the z – table to determine the
    required probability.

    z = (24600-25000)/200 = -2
    P(z< -2) = 0.0228

    or 2.28% of the sample means will be less than 24,600 mi.


    Practice

     1. A certain group of EI recipients receives benefits averaging $340 per


    week with a standard deviation of $60. Consider the population to be
    normally distributed. If a random sample of 25 people is taken, what is the
    probability their mean benefit will be greater than $ 370 per week?
     2. A population of 31 year-old males has a mean salary of $59,321 with a
    standard deviation of $4,120. If a sample of 100 men is taken, what is the
    probability their mean salaries will be less than $58,000?
     There are 220 dogs at a dog show who weigh an average of 11 pounds,
    with a standard deviation of 7 pounds. Consider the weights of dogs to be
    normally distributed.
     a) If a dog is chosen at random, what is the probability it has an average
    weight of greater than 7 pounds and less than 15 pounds?
     b) If 50 dogs are chosen, what is the probability that their mean weight is
    less than 8 pounds?

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