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Central Limit Theorem

The document discusses the central limit theorem and properties of sampling distributions of sample means. It states that a population that is normally distributed will have a bell-shaped curve and percentages equal to areas under the normal curve defined by parameters μ and σ. It also notes that if a sample of n is taken from a normally distributed population N, then the sample mean x̅ will also be normally distributed with μx̅ equal to the population mean μ and σx̅ equal to the population standard deviation σ divided by the square root of the sample size n. Further, even if a population is not normally distributed, as long as the sample size is at least 30, the sample mean x̅ will still be approximately normally distributed

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Richard Orpiano
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63 views1 page

Central Limit Theorem

The document discusses the central limit theorem and properties of sampling distributions of sample means. It states that a population that is normally distributed will have a bell-shaped curve and percentages equal to areas under the normal curve defined by parameters μ and σ. It also notes that if a sample of n is taken from a normally distributed population N, then the sample mean x̅ will also be normally distributed with μx̅ equal to the population mean μ and σx̅ equal to the population standard deviation σ divided by the square root of the sample size n. Further, even if a population is not normally distributed, as long as the sample size is at least 30, the sample mean x̅ will still be approximately normally distributed

Uploaded by

Richard Orpiano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Normally distributed Population

The histogram forms a Bell-shaped curve


The percentages for the population are equal to the areas of the normal curve with
parameters 𝜇 𝑎𝑛𝑑 𝜎

If n is taken form a normally distributed N with 𝜇 and 𝜎, then the RV 𝑥̅ is also normally distributed
𝜎
with 𝜇𝑥̅ = 𝜇 and 𝜎𝑥̅ = 𝑛
√

If the population is nonnormally distributed, the RV 𝑥̅ is still approximately normally


distributed, provided that n is relatively large (n ≥ 30)

Central Limit Theorem


Properties of Sampling Distribution of Sample Means

1. 𝜇 = 𝜇𝑥̅
𝜎
2. 𝜎𝑥̅ = for infinite population. The finite correction factor is used when the population is finite.
√𝑛
3. It will tend to have a normal distribution, regardless the shape of the population.
Suppose n ≥ 30 was taken from N with mean 𝜇 and SD 𝜎. Then, regardless of the
distribution of the population, the RV 𝑥̅ is approximately ND with a mean of 𝜇𝑥̅ = 𝜇 and
𝜎
𝜎𝑥̅ = .
√𝑛

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