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    Central Limit Theorem

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    PappuRamaSubramaniam
    The central limit theorem states that as sample size increases, the sampling distribution of the sample mean approaches a normal distribution, regardless of the shape of the population distribution. For sample sizes over 30, the sampling distribution will be nearly normal. This allows us to use the normal distribution to calculate probabilities involving the sample mean, even if the population is not normally distributed.

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    Central Limit Theorem

    Uploaded by

    PappuRamaSubramaniam
    38 views15 pages
    The central limit theorem states that as sample size increases, the sampling distribution of the sample mean approaches a normal distribution, regardless of the shape of the population distribution. For sample sizes over 30, the sampling distribution will be nearly normal. This allows us to use the normal distribution to calculate probabilities involving the sample mean, even if the population is not normally distributed.

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    The central limit theorem states that as sample size increases, the sampling distribution of the sample mean approaches a normal distribution, regardless of the shape of the population distribution. For sample sizes over 30, the sampling distribution will be nearly normal. This allows us to use the normal distribution to calculate probabilities involving the sample mean, even if the population is not normally distributed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    38 views15 pages

    Central Limit Theorem

    Uploaded by

    PappuRamaSubramaniam
    The central limit theorem states that as sample size increases, the sampling distribution of the sample mean approaches a normal distribution, regardless of the shape of the population distribution. For sample sizes over 30, the sampling distribution will be nearly normal. This allows us to use the normal distribution to calculate probabilities involving the sample mean, even if the population is not normally distributed.

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    CENTRAL LIMIT THEOREM

    the sampling
    As the n↑
    distribution
    sample
    becomes
    size gets
    almost normal
    large
    regardless of
    enough…
    shape of
    population

    x
    SAMPLE MEAN SAMPLING
    DISTRIBUTION: IF THE
    POPULATION IS NOT NORMAL
    The Central Limit Theorem states that the
    sampling distribution of the sample means
    approaches a normal distribution as the 
    sample size gets larger — no matter what the
    shape of the population distribution. This fact
    holds especially true for sample sizes over 30. All
    this is saying is that as you take more samples,
    especially large ones, your graph of the 
    sample means will look more like a normal
    distribution.
    SAMPLE MEAN SAMPLING
    DISTRIBUTION: IF THE
    POPULATION IS NOT NORMAL
    We can apply the Central Limit Theorem
    Even if the population is not normal because
    sample means from the population
    will be approximately normal as long as
    the sample size is large enough.
    Properties of the sampling distribution:

    σ
    μx  and σx 
    μ n
    SAMPLE MEAN SAMPLING
    DISTRIBUTION : IF THE POPULATION
    IS NOT NORMAL (continued)
    Population Distribution
    Sampling
    distribution
    Properties
    Central Tendency

    μx 
    μ x
    μ Sampling Distribution
    becomes normal as n increases

    Variation Larger
    Smaller
    Ox = σ
    sample
    sample size size
    n
    μx x
    HOW LARGE IS LARGE ENOUGH?

    For most distributions, n > 30 will give


    a sampling distribution that is nearly normal

    For fairly symmetric distributions, n > 15

    For normal population distributions,


    the sampling distribution of the
    mean is always normally distributed
    EXAMPLE
    Suppose a population has mean μ=8 and
    standard deviation σ=3.

    Suppose a random sample of size n = 36 is


    selected.

    What is the probability that the sample mean


    is between 7.8 and 8.2?
    EXAMPLE (continued)
    Solution:
    Even if the population is not Normally
    distributed, the central limit theorem can be
    used (n > 30) so the sampling distribution

    of x is approximately normal.
    … with mean μx = 8
    σ 3
    …and standard deviation o x  n  36  0.5
    EXAMPLE (continued)
    Solution (continued):
     
     7.8 - 8 X-μ 8.2 - 8 
    P(7.8  X  8.2)  P  3
     3 σ 
     36 n 36 

     P(-0.4  Z  0.4) 0.3108

    Population Sampling Standard Normal
    Distribution Distribution Distribution -.1554
    ?? +.1554
    ? ? ??

    ? ? Sample Standardize
    ?? ??

    7.8 8.2 -0.4 0.4


    Z
    μ X μ 8 x μ z
    8 X
    0
    POPULATIONPROPORTIONS
    π = the proportion of the population
    having some characteristic
    Sample proportion (p) provides an
    estimate of π
    p = X where 0 ≤ p ≤
    n 1
    X- no. of items in the sample having the
    characteristic of interest
    N- sample size
    POPULATIONPROPORTIONS
    p is approximately distributed as a
    normal distribution when n is large
    (assuming sampling with replacement
    from a finite population or without
    replacement from an infinite population)
    SAMPLING DISTRIBUTION OF p
    Approximated by a Sampling Distribution
    P( ps
    normal distribution ) .3
    .2
    if .1
    nπ  5 and 0
    0 .2 .4 .6 8 1 p
    n(1 π )  5
    π(1
    where μp π and σ p
    π) n

    (where π = population
    proportion)
    Z-VALUE FOR PROPORTIONS
    Standardize p to a Z value with the
    formula:
    p
    p
    Z   (1 
    σp )n
    EXAMPLE
    If the true proportion of voters who
    support Proposition A is π = 0.4, what is the
    probability that a sample of size 200
    yields a sample proportion between 0.40 and
    0.45?
    if π = 0.4 and n = 200,
    i.e.:
    what is P(0.40 ≤ p ≤ 0.45)
    ?
    EXAMPLE (continued)

    If π = 0.4 andn = 200, what is P(0.40 ≤


    p ≤ 0.45) ?

    Find σp : σp   (1  ) 
    0.4(1 0.4)
     0.03464
    n 200
    Convert to standardized normal:
     0.40  0.40 
    0.03464
     0.45  0.40 0.03464 
    P(0.40  p  0.45)  P Z 
     P(0  Z 
    1.44)
    EXAMPLE (continued)
    If π = 0.4 and n = 200, what is P(0.40 ≤ p ≤
    0.45) ?

    Use standardized normal table:


    P(0 ≤ Z ≤ 1.44) = 0.4251
    Standardized
    Sampling Distribution Normal
    Distribution 0.4251

    Standardize

    0.40 0.45 0 1.44


    p Z

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