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CLT (central limit theorem)

  • if we repeatedly take independent, random samples of size n from any population, then when n is large the distribution of the sample means will approach a normal distribution, independently of the population’s actual distribution
  • As the sample size increases, the sampling distribution of the mean, X-bar, can be approximated by a normal distribution with mean µ and standard deviation σ/√n where:
  • µ is the population mean
  • σ is the population standard deviation
  • n is the sample size
  • If you roll a six-sided die, the probability of rolling a one is 1/6, a two is 1/6, a three is also 1/6, etc.
  • The population mean for a six-sided die is $(a+b)/2 = (6+1)/2 = 3.5$ and the population standard deviation is $\sqrt{\frac{(6-1 + 1)^2-1}{12}} = 1.708$
  • Thus, if the theorem holds true, the mean of the 30 dice averages should be about $3.5$ with standard deviation $1.708 / \sqrt{30} = 0.31$.