Statistics and

Probability
Quarter 3 – Module 19:
Illustrating the Central Limit
Theorem
 What I Need to Know

This module intends to let you illustrate the Central Limit Theorem using varied
situations, diagrams, and illustrations. Always remember that the quality of your
education in this time of crisis depends on you now. Have fun, be confident that
you can do it, and understand this module on your own. This module discusses the
context of our current situation right now.
After going through this module, you are expected to:

1. illustrate the Central Limit Theorem;

2. define the sampling distribution of the sample mean using the Central Limit
Theorem; and
3. create a histogram of the sampling distribution of the sample mean.

What I Know

Let us see how far you will go and how much you know about this pre-test. Let’s
get started!

Read and analyze each item carefully. On a separate paper, write the letter of the
correct answer for each statement that corresponds to your answer. The perfect
score is 15 points. Use the rubric provided after the test.

1. If the sampling distribution of the mean is 6.5, which of the following statements
best describe the population mean?
a. The population decreases by 6.5.
b. The population is greater than 6.5.
c. The population mean is also equal to 6.5.
d. The population mean and mean of the sampling distribution of the means
cannot be compared.

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2. What does the Central Limit Theorem state?
a. the sample size is large
b. all possible samples are selected
c. the standard error of the sampling distribution is small
d. the standard deviation is sufficiently large than the normal

3. The Central Limit Theorem states that the mean of the sampling distribution of
the sample mean is
a. larger than the population mean.
b. exactly equal to the population mean.
c. close to the population means if the sample size is large.
d. equal to the population mean divided by the square root of the sample size.

4. The _________ states: “As the sample size n increases, the shape of the
distribution of the sample means taken without replacement from a population
with mean 𝜇 and the standard deviation 𝜎 will approach a normal distribution.”
a. Z distribution
b. Central limit theorem
c. chi distribution
d. Pythagorean theorem

5. If a population has a mean of 12.8, what is the mean of the sampling

distribution?
a. less than 12.8
b. larger than 12.8
c. closer to 12.8
d. exactly the same as 12.8

6. As the sample size n increases, the standard deviation of the sampling

distribution __________. (2 points)

a. Increases
b. decreases
c. stays the same
d. not enough information is given

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7. Which of the following descriptions does NOT illustrate the Central Limit
Theorem? (2 points)

a. The Central Limit Theorem is used to approximate the distribution of the

sample mean over the distribution of the population mean.

b. If the sample size n, where n is sufficiently large is drawn from any

population with mean 𝜇 and a standard deviation 𝜎, then the sampling
distribution of the sample means approximates a normal distribution.

c. Whenever the population is not normally distributed, or if we do not know

distribution, the Central Limit Theorem allows us to conclude that the
distribution of sample means will be normal if the sample size is sufficiently
large.

d. Given a random variable X with mean 𝜇 and variance 𝜎 2 , then regardless of

whether the population distribution of X is normally distributed or not, the
shape of the distribution of the sample means taken from the population
approaches a normal distribution.

8. Which of the following statements is NOT true about the Central Limit Theorem?
(2 points)
a. The population mean and the mean of the sampling distribution of the
mean
are equal.

b. The variance of the sampling distribution of the mean and the population
variance is the same.

c. The central limit theorem tells us exactly what the shape of the distribution
of the mean will be when we draw repeated samples from a given
population.

d. If you take repeatedly independent random samples of size n from any

population, then when n is large, the distribution of the sample mean will
approach a normal distribution.

9. Consider the population consisting of values {2, 4, 6}. List all the possible
samples of size 2 which can be drawn with replacement. (2 points)
a. {2,4,6}
b. {(4,2),(4,4),(4,6),(6,2),(6,4),(6,6)
c. {(2,2),(2,4),(2,6) ,(4,2),(4,4),(4,6)}
d. {(2,2),(2,4),(2,6),(4,2),(4,4),(4,6),(6,2),(6,4),(6,6)}

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10. If the population has a variance of 4.6, what is the variance of the sampling
distribution of its means if the sampling distribution was derived with sample
size n = 2 and all possible samples are drawn with replacements? (2 points)
a. 21.16
b. 19.22
c. 10.58
d. 2.3

Rubric for Two -Point Items

Number of Points Criteria

2 points With a complete solution and correct answer
1 Point The answer is correct but without a solution
0 Point ( no point) Incorrect answer without a solution

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Lesson
Illustrating the Central
1 Limit Theorem
Many common statistical procedures require data that approximately follows a
normal distribution. However, normally distributed data isn’t always the case.
There are cases wherein the population is skewed. This is where the Central Limit
Theorem becomes useful.

For you to be able to understand clearly Central Limit Theorem, you need to
remember the prerequisite concepts. Make sure that you still remember your
lesson about parameter and statistics and the sampling distribution of the sample
mean which were previously discussed. A portion of this module will help you recall
these topics.

As a start, this module presents the current concerns of our community. I believed
that you are updated on the news about the impact of COVID-19 on many of our
fellow Filipino people and our community. Here is a glimpse of how it started.

The first case of novel coronavirus (2019-nCoV, now COVID-19) in the

Philippines was confirmed on 30 January 2020, in a 38-year old woman
who arrived from Wuhan. Two days later, the Philippines recorded the first
death outside China on 01 February 2020.
The Philippine government declared a health emergency on 09 March,
following a spike in new confirmed cases and local transmission. The move
will release funds to local governments and healthcare officials to handle
any further surge in cases that made it more sensational.
The COVID-19 Code Alert system was revised upwards to Red
Sublevel 2 on 12 March.

(https://www.pharmaceutical-technology.com/features/coronavirus-
affected-countries-philippines-measures-impact-tourism-economy/)

To visualize the content of this module, the situations and data set used here are
based on this unfortunate event that devastated the lives of many people. Statistics
is a tool that somehow helps you to appreciate the importance of data analysis.

Some situations and images placed here were based on the personal experience of
the writer of this module to help you understand and illustrate the Central Limit
Theorem.

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 What’s In

Activity 1
Consider a population of Senior High School consisting of the values 1, 2, 3, 4, 5,
and 6.

Compute for the following:

1. population mean
2. population variance
3. population standard deviation
4. illustrate the probability histogram of the sampling distribution of the means

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Activity 2
Consider all the possible samples of size 2 that can be drawn with replacement
from the population 1, 2, 3, 4, 5, and 6. Create a sampling distribution of the
sample mean.

Compute for the following:

1. Mean of the sampling distribution of the sample mean

2. Variance of the sampling distribution of the sample mean
3. Standard deviation of the sampling distribution of the sample mean
4. Illustrate the probability histogram of the sampling distribution of the mean

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 What’s New

From Activities 1 and 2, compare the following:

1. population mean and the mean of the sampling distribution of the sample
mean
2. population variance and the variance of the sampling distribution of the
sample mean
3. population standard deviation and the standard deviation of the sampling
distribution of the sample mean
4. probability histogram of the population and the sampling distribution of the
mean with size 2

Show your comparisons here:

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 What is It

𝛴𝑋
In Activity 1, we get the population mean using the formula 𝜇 =
𝑁
where:
𝜇 – population mean
𝛴𝑋 − the sum of all data in terms of X
N - population size

Therefore, we have:

𝛴𝑋
𝜇= Substitute
𝑁
1+2+3+4+5+6
= Add each data divided by the population size
6
21
= Simplify
6
𝜇 = 3.5 (population mean)

To solve for the population variance, subtract each data to the population mean
and square the result.

The table below shows the summary of the difference between each data and the
computed population mean in the second column while the square of each is on
the third column. The fourth column shows the probabilities of each data.

Data – Population Mean Square of the Data – Population Probability

X
(X- 𝜇) Mean (X- 𝜇)2 P (X)
1
1 1-3.5 = -2.5 (2.5)2 = (2.5)(2.5) = 6.25
6
1
2 2-3.5 = -1.5 (-1.5)2 = (-1.5)(-1.5) = 2.25
6
1
3 3-3.5 = -0.5 (-0.5)2 = (-0.5)(-0.5)= 0.25
6
1
4 4-3.5 = 0.5 (0.5)2 = (0.5)(0.5) = 0.25
6
1
5 5-3.5 = 1.5 (1.5)2 = (1.5)(1.5) = 2.25
6
1
6 6-3.5 = 2.5 (2.5)2 = (2.5)(2.5) = 6.25
6
N=6 𝛴 (x -𝜇)2 = 17.5 𝛴𝑃 (𝑋) = 1

2. Solve for the population variance using the formula

𝛴 (𝑋 −𝜇)2
σ2 =
𝑁
17.5
=
6
σ2 ≈ 2.92

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 ∑ (𝑋−𝜇)2
3. To solve for the population standard deviation, use the formula, 𝜎 = √
𝑁
17.5
thus, we have 𝜎 = √
6

≈ √2.92
σ ≈ 1.71

4. For the probability histogram of the population wherein X = x and n = 1, we have

0 1 2 3 4 5 6

For Activity 2, the table shows and summarizes the information needed to compute
the mean, variance, and standard deviation of the sampling distribution of the
sample mean.

Sample Sample
Observation Sample Mean (𝑋 − 𝜇𝑋 ) (𝑋 − 𝜇𝑋 )2 Observation Sample Mean (𝑋 − 𝜇𝑋 ) (𝑋 − 𝜇𝑋 )2
( 𝑋) ( 𝑋)

1 (1,1) 1 -2.5 6.25 19 (4,1) 2.5 -1 1

2 (1,2) 1.5 -2 4 20 (4,2) 3 -0.5 0.25
3 (1,3) 2 -1.5 2.25 21 (4,3) 3.5 0 0
4 (1,4) 2.5 -1 1 22 (4,4) 4 0.5 0.25
5 (1,5) 3 -0.5 0.25 23 (4,5) 4.5 1 1
6 (1,6) 3.5 0 0 24 (4,6) 5 1.5 2.25
7 (2,1) 1.5 -2 4 25 (5,1) 3 -0.5 0.25
8 (2,2) 2 -1.5 2.25 26 (5,2) 3.5 0 0
9 (2,3) 2.5 -1 1 27 (5,3) 4 0.5 0.25
10 (2,4) 3 -0.5 0.25 28 (5,4) 4.5 1 1
11 (2,5) 3.5 0 0 29 (5,5) 5 1.5 2.25
12 (2,6) 4 0.5 0.25 30 (5,6) 5.5 2 4
13 (3,1) 2 -1.5 2.25 31 (6,1) 3.5 0 0
14 (3,2) 2.5 -1 1 32 (6,2) 4 0.5 0.25
15 (3,3) 3 -0.5 0.25 33 (6,3) 4.5 1 1
16 (3,4) 3.5 0 0 34 (6,4) 5 1.5 2.25
17 (3,5) 4 0.5 0.25 35 (6,5) 5.5 2 4
18 (3,6) 4.5 1 1 36 (6,6) 6 2.5 6.25

∑ 𝑋̅ = 126 ̅ − 𝝁𝑿̅ )𝟐 = 52.5

∑(𝑿

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Let us now solve for the mean, variance, and standard deviation of the sampling
distribution with sample size 2 (with replacement).

1. Mean of the sampling distribution of the sample mean

𝛴𝑋
𝜇𝑋 = where n is the number of all possible samples of size 2
𝑛

126
=
36
= 3.5
2. Variance of the sampling distribution of the sample mean
𝛴( 𝑋−𝜇𝑋)2
𝜎 2𝑋 = where n is the number of all possible samples of size 2
𝑛

52.5
=
36
≈ 1.46
3. Standard Deviation of the sampling distribution of the sample mean
𝛴( 𝑋−𝜇𝑋)2
𝜎𝑋 = √ where n is the number of all possible samples of size 2
𝑛
52.6
=√
36
≈ 1.21

5. To illustrate the probability histogram of the sampling distribution of the

sample, the following table is needed:

Sampling Distribution of the sample mean with replacement

𝑋 f Probability P(𝑋)
1
1 1 36
2
1.5 2 36
3
2 3 36
4
2.5 4 36
5
3 5 36
6
3.5 6 36
5
4 5 36
4
4.5 4 36
3
5 3 36
2
5.5 2 36
1
6 1 36

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In the What's New part, we compared the values solved through the data in the
population and the sampling distribution.

1. The population mean 𝜇 = 3.5 while the mean of the sampling

distribution
𝜇𝑋 = 3.5. Notice that the population mean is equal to the mean of the
sampling distribution. That is 𝜇 = 𝜇𝑋 .

2. The population variance σ2 ≈ 2.92 while the variance of the sampling

distribution 𝜎𝑋2 ≈ 1.46. Notice that if we divide the population variance by the
sample size of 2, we have 1.46 which is equal to the variance of the sampling
𝜎2
distribution of the sample mean. That is, therefore, 𝜎𝑋2 =
𝑛

3. The population standard deviation σ ≈ 1.71 while the standard deviation of

the sampling distribution 𝜎𝑋 ≈ 1.21. Notice that if we divide the population
standard deviation by the square root of the sample size of 2, we have 1.21
which is equal to the standard deviation of the sampling distribution. That
1.71 𝜎
is, = 1.21. Therefore, 𝜎𝑋 = .
√2 √𝑛

4. The probability histogram of the population wherein n=1 looks like this

P(x)

0 1 2 3 4 5 6 X

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 While the probability histogram of the sampling distribution of the sample
mean with size n = 2 looks like this.

The illustration above is more likely to have a curve of a normal distribution while
the probability histogram of the population is not normally distributed.

Notes to the Teacher

Using the calculator and other applications is okay because it
saves computational time. Please remind students that it is
important to understand and follow the procedures to find the
correct answer.
Likewise, remind the students the meaning of the Greek letters Σ
(uppercase sigma) and μ (lowercase mu) and the proper way to
read it. Σ is read as “summation” while μ is read as “mu” in
Statistics.

Based on our activity, it was evident in the Central Limit Theorem that the
sampling distribution will be approximately normally distributed for large sample
sizes regardless of the distribution from which we are sampling. It is also important
to recall that the mean of the sampling distribution of the sample mean is equal to
the population mean: 𝜇𝑋 = 𝜇 , and the standard deviation of the sampling
𝜎
distribution of the sample mean (sampling with replacement) is equal to 𝜎𝑋 = .
√𝑛

As discussed previously, if the population is normally distributed, the sampling

distribution of the sample mean is also normally distributed. But what if the
population is not normal?

That is where the Central Limit Theorem addresses this question. The distribution
of the sample mean tends toward the normal distribution as the sample size
increases, regardless of the distribution from which we are sampling. As a simple

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guideline, the sample mean can be considered approximately normally distributed
if the sample size is at least 30 (n ≥ 30 ).

If the sample size is sufficiently large, the Central Limit Theorem can be used to
answer the sample mean in the same manner that a normal distribution can be
used to answer questions about individual samples. This also means that even if
the population is not normally distributed, or if we don’t know of its distribution,
the Central Limit Theorem allows us to conclude that the distribution of the sample
mean will be normal if the sample size is sufficiently large. It is generally accepted
that a sample size of at least 30 is large enough to conclude that the Central Limit
Theorem will ensure a normal distribution in the sampling process regardless of
the distribution of the original population. Further, we can continue to use the z
conversion formula in our calculations. This time we will use the formula,
𝑋−𝜇
z= 𝜎
√𝑛

Why it is important to know the Central Limit theorem?

Many statistics have distributions that are approximately normal for large sample
sizes, even when we are sampling from a distribution that is not normal. This
means that we can develop statistical inference procedures that are based on the
normal distribution, even if we are sampling from a population that is not normal,
provided we have a large sample size.

Let us illustrate this through this example:

Suppose that the average age of the people living in a Barangay is 34 with a
standard deviation of 4. If 100 residents of a certain Barangay decided to take
summer outing after the COVID-19 pandemic and Enhanced Community Quarantine
has been lifted for bonding and relaxation, what is the probability that the average
age of these residents is less than 35?

Solution:

It is not given that the population is normally distributed but since n > 30, then
you can assume that the sampling distribution of the mean ages of 100 barangay
residents is normal according to the Central Limit Theorem.

The Central Limit Theorem describes the normality of the distribution of the sample
mean taken from a population that is not normally distributed.
Step 1: Write the given data.

𝜇 = 34, 𝜎 = 4, 𝑋 = 35, 𝑛 = 100

Step 2: Convert the raw score to the standard score using the formula.
𝑋−𝜇
𝑍= 𝜎
√𝑛
35−34 10
Z= 4 = = 2.5
4
√100

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 Step 3: Use the Z table to find P (Z < 2.5).

𝑃( 𝑍 < 2.5) = 0.9938

Therefore, the probability that the random sample of 100 persons has an average of
fewer than 35 years is 0.9938 or 99.38%

Consider the illustrations below for a better understanding of the Central Limit
Theorem. Still refer to our previous example:

Suppose that the average age of the people living in a Barangay is 34 with a
standard deviation of 4. One hundred (100) residents of a certain Barangay decided
to take summer outings after the COVID-19 pandemic and Enhanced Community
Quarantine was lifted for bonding and relaxation.

If we make a relative histogram of samples with various sample sizes, it would look
like the histograms below.

POPULATION (individuals) Distribution of ages of

individuals living in a Barangay. This is an
example of uniform distribution whenever the
sample size n =1. Each individual has an equal
probability of selecting as a sample. The
histogram will look like on the left illustration
not so interesting!

Sampling Distribution of the SAMPLE MEAN

(n=40). Different samples of sizes 40 were
selected then calculate the mean of each sample.
The histogram for those mean will look like this
illustration which becomes a little bit interesting!
The curve starts to show.

Sampling Distribution of the SAMPLE MEAN

(n=80). Different samples of sizes 80 were
selected, then calculate the mean of each
sample. The histogram for those mean will look
like this illustration that is almost close to a
normal curve.

As we continuously increase the samples and calculate the sample mean, the
histogram of the illustration comes to be normally distributed. That is where the
Central Limit Theorem is used to make better inferences.

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