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Central Limit Theorem

The document provides an overview of the central limit theorem (CLT) and how it can be used to estimate population values based on random samples. Some key points covered include: - The CLT specifies that as the sample size increases, the sampling distribution of the sample means will approach a normal distribution, even if the population is not normally distributed. - For a sample mean calculated from multiple random samples, the mean and standard deviation of the sampling distribution can be used to calculate confidence intervals and perform hypothesis tests about the true population mean. - Examples are provided to demonstrate how to calculate confidence intervals for a population mean based on a random sample using the CLT.

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Rakesh Kumar Chaudhary
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217 views

Central Limit Theorem

The document provides an overview of the central limit theorem (CLT) and how it can be used to estimate population values based on random samples. Some key points covered include: - The CLT specifies that as the sample size increases, the sampling distribution of the sample means will approach a normal distribution, even if the population is not normally distributed. - For a sample mean calculated from multiple random samples, the mean and standard deviation of the sampling distribution can be used to calculate confidence intervals and perform hypothesis tests about the true population mean. - Examples are provided to demonstrate how to calculate confidence intervals for a population mean based on a random sample using the CLT.

Uploaded by

Rakesh Kumar Chaudhary
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 14

CENTRAL LIMIT

THEOREM

specifies a theoretical distribution


formulated by the selection of all
possible random samples of a fixed
size n
a sample mean is calculated for each
sample and the distribution of sample
means is considered
clt

SAMPLING DISTRIBUTION
OF THE MEAN

The mean of the sample means is equal


to the mean of the population from
which the samples were drawn.
The variance of the distribution is
divided by the square root of n. (the
standard error.)

clt

STANDARD ERROR
Standard Deviation of the Sampling
Distribution of Means
x \n

clt

How Large is Large?


If the sample is normal,
normal then the sampling
distribution of x will also be normal, no matter
what the sample size.
When the sample population is approximately
symmetric,
symmetric the distribution becomes approximately
normal for relatively small values of n.
When the sample population is skewed,
skewed the sample
size must be at least 30 before the sampling
distribution of x becomes approximately normal.

clt

EXAMPLE
A certain brand of tires has a mean life of
25,000 miles with a standard deviation of
1600 miles.
What is the probability that the mean life of
64 tires is less than 24,600 miles?

clt

Example continued
The sampling distribution of the means
has a mean of 25,000 miles (the
population mean)
= 25000 mi.
and a standard deviation (i.e.. standard
error) of:
1600/8 = 200
clt

Example continued
Convert 24,600 mi. to a z-score and use
the normal table to determine the
required probability.
z = (24600-25000)/200 = -2
P(z< -2) = 0.0228
or 2.28% of the sample means will be
less than 24,600 mi.
clt

ESTIMATION OF
POPULATION VALUES
Point Estimates
Interval Estimates

clt

CONFIDENCE INTERVAL
ESTIMATES for LARGE
SAMPLES

The sample has been randomly


selected
The population standard deviation is
known or the sample size is at least
25.

clt

Confidence Interval Estimate


of the Population Mean

s
s
Xz
Xz
n
n

X: sample mean
s: sample standard deviation
n: sample size

clt

10

EXAMPLE
Estimate, with 95% confidence, the
lifetime of nine volt batteries using a
randomly selected sample where:
--

X = 49 hours
s = 4 hours
n = 36

clt

11

EXAMPLE continued
Lower Limit: 49 - (1.96)(4/6)
49 - (1.3) = 47.7 hrs
Upper Limit: 49 + (1.96)(4/6)
49 + (1.3) = 50.3 hrs
We are 95% confident that the mean
lifetime of the population of batteries is
between 47.7 and 50.3 hours.
clt

12

CONFIDENCE BOUNDS
Provides a upper or lower bound for the
population mean.
To find a 90% confidence bound, use the z
value for a 80% CI estimate.

clt

13

Example
The specifications for a certain kind of
ribbon call for a mean breaking strength of
180 lbs. If five pieces of the ribbon have a
mean breaking strength of 169.5 lbs with
a standard deviation of 5.7 lbs, test to see
if the ribbon meets specifications.
Find a 95% confidence interval estimate
for the mean breaking strength.

clt

14

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