Speaker Himanshu Manroa

So, to define this particular aspect of central limit theorem, much more scientifically or in a formula manner, we
have this very simple formula,.

which tells you if the mean of your sample is equal to the standard deviation of your population divided by the
root of your sample size, you know, that's the mean of your population, of your sample is equal to the mean of
your, you know, larger population. That's when you would know that you have picked up a good sample size

Let me repeat that again. You know, so for you to be able to pick up a good sample size, you know, you take
a square root of that sample size. You know, and the formula is your standard deviation of your sample size
upon the square root of the sample size that you have picked up.
If the mean, you know, this is equal to the mean of your larger population, it means that you have picked up a
good sample size. You can see it, you know, through various examples, which allows you to determine the
right sample size, if the mean of the population and the sample is close together.

So, that's the formula that goes into it. Now, where would you use the goodness of these sample sizes, you
know, that you have decided to represent your larger population? Where do you use these kinds of
fundamentals?
You know, you would use this in, say exit polls, in opinion polls of elections. You know, so a
good exit poll
sample size or opinion poll sample size would be the one where the mean is closer to the
larger population.

Similarly, you know, we could have various other examples of say, you know, median
household income levels of say, for a telecom brand or a soap brand, or even for say an
SUV launch that you want to go into. You want to understand the spend or the disposable
income levels.

And that's where you would do these kinds of, you know, you would apply formula to
understand, you know, if the sample size that you have picked up, the mean of these
income levels, if it's closer to what you had in mind of the larger population, it means
that you have picked up a good sample size for your survey.

We said it's a completely random population distribution. We took three

random samples, we tooktheir means and then we said we'll plot these
means, or rather we'll plot the frequency of these means, and we said that
would end up being a normal distribution. So this obviously sounds very weird
right. So, let's try and see this using a tool. So let's, so whatever I just told
you, let's try andunderstand this using a simulation tool.