Central Limit Theorem (STA 100 Dr. Bissell)

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Central Limit Theorem

  • if the population distribution of Y itself is Normally Distributed, or

  • if the sample size n is “large”, often n >= 30, for any distribution of Y, then the distribution of sample mean Y bar is approximately Normal with mean u(y) and standard deviation o(y)/(sqrt n)).

  • ie. y bar is approximately N (u(y), o(y)/sqrt(n) WHICH IS THE SAME AS u(y bar), o(y

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