Central Limit Theorem

Central Limit Theorem(CLT)

• If random samples of size n are drawn from any population with a
finite mean 𝜇 and standard deviation 𝜎, then when n is large, the
sampling distribution of the sample mean 𝑋ഥ is approximately
normally distributed with mean 𝜇 and standard deviation 𝜎/ 𝑛
CLT(Applicability)
• If the sampled population is normal, then CLT gives more than just
an approximation. In this case, the sampling distribution is normal.
• If the sampled population is almost symmetric, the sampling
distribution becomes approximately normal for relatively small
values of n.
• If the sampled population is skewed, the sampling distribution
becomes approximately normal only for large values of n. Usually
this is when n≥30.
CLT(Applicability)
• If the sample size is sufficiently large, the central limit theorem can be
used to answer questions about sample means in the same manner
that a normal distribution can be used to answer questions about
individual values. The only difference is that a new formula must be
used for the z values.
CLT: Example 1
• A sample of size 64 is taken from a population with 𝜇=10 and 𝜎=25

a. Find the probability that the mean of the sample is less than 10.2;
and
b. The sum of these 64 values is between 800 and 1,200
CLT: Example 1
• A sample of size 64 is taken from a population with 𝜇=10 and 𝜎=25

Find the probability that the mean of the sample is less than 10.2; and
A: 0.5239 or 52.39%

The sum of these 64 values is between 800 and 1,200

A: 0.2093 or 20.93%
CLT: Example 2
• A population of unknown shape has a mean of 75. A sample of 40 is
selected from this population, which turns out having a standard
deviation of 5. Calculate the probability that the sample mean is

1. Greater than 74.

2. Between 76 and 77
CLT: Example 2
• A population of unknown shape has a mean of 75. A sample of 40 is
selected from this population, which turns out having a standard
deviation of 5. Calculate the probability that the sample mean is

1. Greater than 74.

A: 0.8962 or 89.62%

1. Between 76 and 77
A: 0.0981 or 9.81%
CLT: Example 3
• A certain machine makes electric resistors having a mean resistance
of 40 ohms.
1. A sample of 36 resistors is taken and their combined resistance is
found to be 1,422 ohms. What is the sampling error of the mean
based on this sample?
2. What is the probability that the sample of 36 resistors has
combined resistance of more than 1,458 ohms? Assume that the
standard deviation of the sample is 2 ohms.
CLT: Example 3
• A certain machine makes electric resistors having a mean resistance
of 40 ohms.
1. A sample of 36 resistors is taken and their combined resistance is
found to be 1,422 ohms. What is the sampling error of the mean based
on this sample?
A: -0.50
2. What is the probability that the sample of 36 resistors has combined
resistance of more than 1,458 ohms? Assume that the standard
deviation of the sample is 2 ohms.
A: 0.0668 or 6.68%
CLT: Example 4
• The average life span of a bread making machine is 7 yrs. with a
standard deviation of 1 year. Assuming that the life span of these
machines follow a normal distribution, find
1. The probability that the mean life span of a random sample of 16
such machines falls between 6.6 and 7.2 yrs. And
2. The value of 𝑋ത to the right where 15% of the means computed from
random samples of size 16 would fall.
Summary
1. Suppose we draw samples of size n from any population with mean
𝜇 and standard deviation 𝜎. Central Limit Theorem assures us that
when the sample size n is large, then the distribution of the sample
means is approximately normal with mean 𝜇 and standard
deviation 𝜎/ 𝑛.
2. For cases where the population is normally distributed, the central
limit theorem applies regardless of the sample size.
3. When only the sample standard deviation s is known and the
sample size is large(n≥30), Central Limit Theorem still applies, but
with standard deviation s/ 𝑛.