The Central Limit Theorem

Contents

Objective  Basic Principles  Examples 

^ Learning Objectives

The Central Limit Theorem module targets the following cognitive tasks:

Task        Skills Concepts
CLT-1: Understand the sampling distribution of sample means
CLT-2: Compute the mean of the sampling distribution of sample means Understand the mean of the sampling distribution of sample means
CLT-3: Compute the standard deviation of the sampling distribution of sample means Understand the standard deviation of the sampling distribution of sample means
CLT-4: Describe the shape of the sampling distribution of sample means Understand the shape of the sampling distribution of sample means
CLT-5: Use the CLT to answer probability questions involving the sample mean Understand how the CLT can be used to answer probability questions involving the sample mean
CLT-6: Understand how the sample size affects the standard error
CLT-7: Understand why large sample sizes are desirable

^ Basic Principles

If the parent distribution is normal, the sampling distribution of the mean is normal with the same mean and a standard deviation that is reduced by a factor of the square root of n (the sample size) relative to the parent distribution. Remarkably, this conclusion holds approximately even if the parent distribution is not normal. This latter result is called the Central Limit Theorem.

^ Examples

Example #1 illustrates the central limit theorem when the underlying distribution is normal or chi-square.

Example #2 (Geometric Parent Distribution) illustrates the central limit theorem when the underlying distribution is uniform, bowtie, right wedge, left wedge, and triangular.

Self-test