Central limit Theorem

The CLT deals with the sampling distribution of the mean, which is the distribution of means from multiple samples drawn from a population.

Key Concept

For CLT to apply, samples must be independent and identically distributed (i.i.d.), the sample size must be sufficiently large (usually n ≥ 30), and the population must have finite variance.

Conditions for CLT

The mean of the sampling distribution is the population mean (µ), and the standard deviation is the population standard deviation (σ) divided by the square root of the sample size (n).

Formula and Parameters

CLT is crucial for parametric tests, providing higher statistical power than non-parametric tests.

Importance in Statistics

Originally deduced by Laplace, the CLT has evolved significantly. It was crucial for the development of modern probability theory and has been refined by various mathematicians over the centuries.

Historical Development

CLT is used in various fields, including medicine, finance, and social sciences, to analyze data and make inferences about populations.

Practical Applications