Speaker: Siddhartha Roy

Okay, so the next thing we're going to talk about is the central limit theorem. And to understand
the central limit theorem, let's start with a completely random probability. A completely random
population distribution. Make this larger and let's make this, right. So you have some value, some
probability of x equal to 1 and 2, absolutely zero and 3, so none of the population is at x equal to
3. There's a fairly large population at x equal to 4 and then slightly less at x equal to 5. So I hope
this part is clear. It's a completely random, looking population distribution.

Now what we do is next is we take some samples of sample size n equal to 5? Let me just write
down the first sample. So it can take a value of 1, take a value of 2, take a value of 4 and take a
value of 5. It can take a value of 1 again. Let me take another sample. You can take a value of 1,
we can take a value of let's say, 4 twice, 5 once and 1 again. Now, let's consider another sample
S3. This time, let's say, there's no 1 at all. This is 2, 2, 3 times 2, 1 times 5 and 1 time 4. So what
I’m going to next going to do is now, I have 3 samples, S1, S2, S3 and I'm going to take the
means of each of this.

So x1 bar is 13 by 5. This will come to 2.6. Similarly x2 bar would be 15 by 5. Next, we have x3
bar which is 15 right. So what I've done here is, I've taken three completely random samples, and
I have found the mean for each of these samples and, as you can see, these means could vary. I
mean, if I keep doing this up to you, know another 100 samples, I'll keep getting different means.

So right now I have three samples. Let's say this is zero. I have one sample at 2.6. This is 2.6.
This is 3. I have 2 samples at 3. Now, if you keep doing this, and I've only considered 3 samples
of N equal to 5 right, if you keep doing this, for let's say you know a thousand samples or even
more - let's say a 10,000 sample. What you start observing is that all these sample means when
you plot the frequency of these sample means, they will start representing or being represented
by a normal distribution graph with some mean and some standard deviation.