TOPIC:

Central Limit Theorem

SUBMITTED TO:
Sir. Syed Aziz

SUBMITTED BY:
M.FARHAN JAVED
DATE: 24/Oct/2011

Central Limit Theorem

Example: Uniform Distribution

The distribution of an average tends to be Normal, even when the distribution from which the average is computed is decidedly non-Normal. Thus, the Central Limit theorem is the foundation for many statistical procedures, including Quality Control Charts, because the distribution of the phenomenon under study does not have to be Normal because its average will be. Furthermore, this normal distribution will have the same mean as the parent distribution, AND, variance equal to the variance of the parent divided by the sample size.

Here's an example: The uniform distribution on the left is obviously non-Normal. Call that the parent distribution

To at over and

compute an average, Xbar, two samples are drawn, random, from the parent distribution and averaged. Then another sample of two is drawn and another value of Xbar computed. This process is repeated, over, and averages of two are computed. The distribution of averages of two is shown on the left.

Repeatedly taking three from the parent distribution, and computing the averages, produces the probability density on the left.

Repeatedly taking four from the parent distribution, and computing the averages, produces the probability density on the left.

Repeatedly taking eight from the parent distribution, and computing the averages, produces the probability density on the left

distribution, and probability

Repeatedly taking sixteen from the parent computing the averages, produces the density on the left.

Repeatedly taking thirty-two from the parent distribution, and computing the averages, produces the probability density on the left.