The Central Limit

Theorem
◦The Central Limit Theorem states that given a
population with mean and standard deviation and
taking sufficiently large random samples (with
replacement) from the given population, the
sampling distribution of the sample means will be
approximately normally distributed.
◦Sample sizes of are considered sufficiently large
◦The sampling distribution of the sample means gets
narrower as the sample size increases.
 PERCENTILE
AND
T-DISTRIBUTION
 The t-distribution (also called Student’s t-
distribution) is a family of distributions that look
almost identical to the normal distribution
curve, only a bit shorter.
The t-distribution is used instead of the
normal distribution when you have small
samples. The larger the sample size, the more
the t distribution looks like the normal
distribution.
Properties of the t-distribution:
1. The t-distribution is bell shaped and symmetric
about the mean.
2. The t-distribution is a family of curves, each
determined by a parameter called the degrees of
freedom. The degrees of freedom are the number of
free choices left after a sample statistic is calculated.
When you use a t-distribution to estimate a
population mean, the degrees of freedom are equal
to one less than the sample size,
3. The total area under a t-curve is 1 (or
100%).
4. The mean, median, and mode of the t-
distribution are equal to zero.
5. As the degrees of freedom increase, the t-
distribution approaches the normal
distribution. After 30 df the t-distribution is
very close to the standard normal z-
distribution.
Degrees of Freedom
A degree of freedom occurs for every data
value which is allowed to vary once a statistic
has been fixed. For a single mean, there are
degrees of freedom. This value will change
depending on the statistic being used.
How to use the t-table
The t-table is a table of t-values of the t-
distribution. The entries of the topmost row
are levels of significance denoted by 𝛼 while
the entries of the left-most column are
degrees of freedom, denoted by v, (Greek-
letter nu) or simply df and inside the body of
the table are the t-values.
Examples:
1.Identify the t-value whose number of samples n =
7 and has an area (𝛼) equal to 0.05.
2. Find the t-value whose degree of freedom is 20
and has 𝛼 = 0.01.
3. Identify the t-value of the following percentiles
given the number of samples.
a. 95th percentile , n= 30
b. 90th percentile, n=20