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Central Limit Theorem

The document explains the concept of sampling distribution of sample means using the Central Limit Theorem, which states that as sample size increases, the sampling distribution approaches a normal distribution. It provides examples of calculating expected means and standard deviations for different populations, as well as solving probability problems related to sample means. The document emphasizes the importance of sample size in improving the accuracy of estimates and probabilities.

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Gino Gallano
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10 views4 pages

Central Limit Theorem

The document explains the concept of sampling distribution of sample means using the Central Limit Theorem, which states that as sample size increases, the sampling distribution approaches a normal distribution. It provides examples of calculating expected means and standard deviations for different populations, as well as solving probability problems related to sample means. The document emphasizes the importance of sample size in improving the accuracy of estimates and probabilities.

Uploaded by

Gino Gallano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Learning Competencies: Defines the sampling distribution of the sample means using

the Central Limit Theorem. (M11/12SP-III-3)

Solves problems involving sampling distribution of the


sample means. (M11/12SP-IIIe-f-1)

At the end of the lesson, you are expected to:


• define the sampling distribution of the sample means; and
• solve problems involving sampling distribution of the sample means

Lesson 1: Sampling Distribution of the Sample Means


from an Infinite Population

What is it . . .

If we want to get a good estimate of the population mean, we have to make n


sufficiently large. This fact is stated in the Central Limit Theorem.
Central Limit Theorem: If random samples of size n are drawn from a
population, then as n becomes larger, the sampling distribution of the mean
approaches the normal distribution, regardless of the shape of the population
distribution.
For samples of size 30 or more, the sample mean (𝑋̅) is approximately normally
distributed, with mean 𝜇𝑥̅ = µ & the standard deviation 𝜎𝑥̅ = σ/ √𝑛 , where n is the
sample size. The larger the sample size, the better the approximation.
In a population, the values of a variable can follow different probability
distribution. These distributions can range from normal, right- skewed, left-
skewed (negatively skewed), (positively skewed) & uniform among others.

Normal Right-Skewed Left-Skewed Uniform

Regardless of the distribution of the population, as the sample size is increased


the shape of the sampling distribution of the sample mean becomes increasingly bell-
shaped, centered on the population mean. Normal distributions have two parameters,
the mean & standard deviation. As the sample size (n) increases, the standard
deviation (often called the standard error) of the sampling distribution becomes
smaller, thus, the sampling distribution clusters more tightly around the mean.

Example 1:
A population has a mean of 60 & a standard deviation of 5. A random sample of 16
measurements is drawn from this population, what would be the expected mean &
standard deviation of the resulting sampling distribution of the means? We shall
assume that the population is infinite.
Solution :
Step 1. Identify the given information. µ = 60, σ = 5, n = 16
Step 2. Find the mean of the sampling distribution. 𝜇𝑥̅ = µ so 𝜇𝑥̅ = 60
Step 3. Find the standard deviation of the sampling distribution.
𝜎𝑥̅ = σ = 5 = 5 = 1.25
√𝑛 √16 4
Example 2:
The heights of male college students are normally distributed with mean of 68 inches
& standard deviation of 3 inches. If 80 samples consisting of 25 students each are
drawn from the population, what would be the expected mean & standard deviation of
the resulting sampling distribution of the means? We shall assume that the
population is infinite.
Solution :
Step 1. Given: µ = 68 in, σ = 3 in, n = 25 students
Step 2. 𝜇𝑥̅ = µ so 𝜇𝑥̅ = 68 in Step 3. 𝜎𝑥̅ = σ = 3 = 3 = 0.6 in

Lesson 2: Solving Problems from the Population

What is it . . .

The Central Limit Theorem is of fundamental importance in statistics because it


justifies the use of the normal curve for a wide range of problems. It assures us that
no matter what the shape of the population distribution of the mean is, the sampling
distribution of the sample means is closely normally distributed whenever n is large.
Example 1:
The average time it takes a group of college students to complete a certain exam is
46.2 mins & the standard deviation is 8 mins. Assume that the variable is normally
distributed, what is the probability that a randomly selected college student will
complete the exam in less than 43 mins?
Solution :
Step 1. Given information: µ = 46.2 mins, σ = 8 mins, X = < 43 mins
Step 2. Formula to use: Here we are dealing with an individual data obtained from the
population to standardize 43, so we will use the formula z = X ̶ µ ,
σ
where: X = measurement σ = population standard deviation
µ = population mean
z = X ̶ µ = 43 ̶ 46.2 = ̶ 0.40
σ 8
Step 3. Find P(X < 43) by getting the area under the normal curve. Use the z-table.
z = ̶ 0.40 has an area of 0.1554

P(X < 43) = P(z < ̶ 0.40)


̶ 0.40 0 = 0.5000 ̶ 0.1554 = 0.3446
Step 4. So, the probability that a randomly selected college student will complete the
exam in less than 43 mins is 0.3446 or 34.46%.
Example 2:
The average milligrams (mg) of cholesterol in a cup of a certain brand of ice cream is
660 mg & the standard deviation is 35 mg. Assume the variable is normally
distributed, what is the probability that the cholesterol content of a cup of ice cream
selected will be more than 670 mg?
Solution :
Step 1. Given information: µ = 660, σ = 35, X = 670
Step 2. z = X ̶ µ = 670 ̶ 660 = 0.29
σ 35
Step 3. Find P(X > 670) by getting the area under the normal curve. Use the z-table.
z = 0.29 has an area of 0.1141

P(X > 670) = P(z > 0.29)


0 0.29 = 0.5000 ̶ 0.1141 = 0.3859
Step 4. So, the probability that the cholesterol content of a cup of ice cream will be
more than 670 mg is 0.3859 or 38.59%.

Lesson 3: Solving Problems from the Sample

What is it . . .

How do you find the probability when taking only a sample of the population?
Example 1:
The average time it takes a group of college students to complete a certain exam is
46.2 mins & the standard deviation is 8 mins. If 50 randomly selected college students
take the exam, what is the probability that the mean time it takes the group to
complete the test will be less than 43 mins?
Solution :
Step 1. Given information: µ = 46.2, σ = 8, 𝑋̅ = < 43, n = 50
Step 2. Formula to use: Here we are dealing with data about the sample means so we
will use the formula z = 𝑋̅ ̶ µ ,
σ/√𝑛
where: 𝑋̅ = sample mean σ = population standard deviation
µ = population mean n = sample size
̅
z = 𝑋 ̶ µ = 43 ̶ 46.2 = ̶ 2.83
σ/√𝑛 8/√50
Step 3. Find P(X < 43) by getting the area under the normal curve. Use the z-table.
z = ̶ 2.83 has an area of 0.4977

P (𝑋̅ < 43) = P(z < ̶ 2.83)


̶ 2.83 0 = 0.5000 ̶ 0.4977 = 0.0023
Step 4. So, the probability that 50 randomly selected college students will complete
the exam in less than 43 mins is 0.0023 or 0.23%.

Example 2:
The average number of milligrams (mg) of cholesterol in a cup of a certain brand of ice
cream is 660 mg & the standard deviation is 35 mg. Assume the variable is normally
distributed, if a sample of 10 cups of ice cream is selected, what is the probability that
the mean of the sample will be larger than 670 mg?
Solution :
Step 1. Given information: µ = 660, σ = 35, 𝑋̅ = > 670, n = 10
Step 2. z = 𝑋̅ ̶ µ = 670 ̶ 660 = 0.90
σ/√𝑛 35/√10
Step 3. z = 0.90 has an area of 0.3159

P(𝑋̅ > 670) = P(z > 0.90)


0 0.90 = 0.5000 ̶ 0.3159 = 0.1841
Step 4. So, the probability that the mean cholesterol content of 10 randomly selected
cups of ice cream will be more than 670 mg is 0.1841 or 18.41%.

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