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.
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).
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.