Central Limit Theorem

Understanding its Application in Hypothesis Testing

Nizivich Huzzen Heinicked F. Ibrao
11 STEM Jaena
Overview of the Central Limit Theorem
 Definition: The Central Limit Theorem (CLT)
states that if the population is normally
distributed or the sample size is large, the
distribution of sample means approaches a
normal distribution.
 Importance: The CLT is fundamental in

statistics as it allows us to make inferences

about population parameters based on
sample statistics.
Assumptions of the Central Limit Theorem
 Normally Distributed Population: The CLT
assumes that the population follows a
normal distribution. If this condition is not
met, other approaches may be needed.
 Large Sample Size: For non-normally
distributed populations, the CLT applies
when the sample size is sufficiently large
(usually n ≥ 30).
Z-Test with Known Population
Standard Deviation
 If the population standard deviation (σ) is
known and the sample size is large, we can
use the z-test.
 Formula: z = (x̄ - μ𝑜) / (σ / √n)
 The test statistic (z) follows a standard

normal distribution.
Z-Test with Unknown Population
Standard Deviation
 When the population standard deviation (σ)
is unknown and the sample size is large, we
can replace σ with the sample standard
deviation (s) in the z-test formula.
 Formula: z = (x̄ - μ𝑜) / (s / √n)
 The resulting test statistic (z) still follows a

standard normal distribution.

Small Sample Sizes and the Central
Limit Theorem
 The CLT does not apply to small sample
sizes (usually n < 30).
 Stricter assumptions are required for
statistical validity, such as assuming the
population is normally distributed.
 If the population standard deviation is

known, the test statistic (x̄ - μ𝑜) / (σ / √n)

still follows a standard normal distribution.
Identifying Appropriate Test
Statistic
 When to use a z-test:
◦ Population variance is known.
◦ Population is normally distributed.
◦ Sample size is large (n ≥ 30).
 When to use a t-test:
◦ Population variance is unknown.
◦ Population is normal or nearly normally distributed.
◦ Sample size is small (n < 30).
Examples
 Example 1:
◦ Population: Battery life in electronic games.
◦ Sample size: 100, population standard deviation known.
◦ Test statistic: z-test.
 Example 2:
◦ Population: Reading speed of students.
◦ Sample size: 12, population standard deviation unknown.
◦ Test statistic: t-test.
 Example 3:
◦ Population: Exercise time of students.
◦ Sample size: 115, population standard deviation unknown.
◦ Test statistic: z-test (CLT applies).
Conclusion
 The Central Limit Theorem is a powerful
concept in statistics.
 It allows us to make inferences about

population parameters based on sample

statistics, under certain assumptions.
 Understanding the appropriate test statistic

is crucial for hypothesis testing.