Reply To: Central limit theorem
Vanshika Gupta
All about central limit theorem
the central limit theorem (CLT) states that the distribution of sample means approximates a normal distribution (also known as a “bell curve”), as the sample size becomes larger, assuming that all samples are identical in size, and regardless of the population distribution shape.
Said another way, CLT is a statistical theory stating that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population. Furthermore, all the samples will follow an approximate normal distribution pattern, with all variances being approximately equal to the variance of the population, divided by each sample’s size.
According to the central limit theorem, the mean of a sample of data will be closer to the mean of the overall population in question, as the sample size increases, notwithstanding the actual distribution of the data. In other words, the data is accurate whether the distribution is normal or aberrant.
As a general rule, sample sizes equal to or greater than 30 are deemed sufficient for the CLT to hold, meaning that the distribution of the sample means is fairly normally distributed. Therefore, the more samples one takes, the more the graphed results take the shape of a normal distribution.
Central Limit Theorem exhibits a phenomenon where the average of the sample means and standard deviations equal the population mean and standard deviation, which is extremely useful in accurately predicting the characteristics of populations.