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Lesson 9 Central Limit Theorem

Central limit theorem
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0% found this document useful (0 votes)
24 views25 pages

Lesson 9 Central Limit Theorem

Central limit theorem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CENTRAL

LIMIT
THEOREM
Statistics and Probability
Objectives
At the end of the session, students are expected to:

Illustrate the Central Limit Theorem

Define the sampling distribution of the sample


mean using the Central Limit Theorem

Solves problem involving sampling


distributions of sample means.
UNDERSTANDING CENTRAL
LIMIT THEOREM
If random samples of size n are drawn from
any population with a finite mean 𝜇 and a
standard deviation 𝜎, n is large, the sampling
distribution of the sample mean 𝑥ҧ is
approximately distributed with mean 𝜇 and
𝜎
standard deviation .
𝑛
When is the CLT applicable?
✓ If the sampled population is normal, then the CLT
gives more than just an approximation.

✓ If the sampled population is almost symmetric, the


sampling distribution becomes approximately
normal for relatively small values of n.

✓ If the sample population is skewed, the sampling


distribution becomes approximately normal only
for large values of n. Usually, this is when 𝑛 ≥ 30.
Example 1
A sample of size 9 is drawn from a
population with a mean of 8 and a
standard deviation of 5. What is the
probability that the mean of the sample is
greater than 10?
Example 1: A sample of size 9 is drawn from a population
with a mean of 8 and a standard deviation of 5. What is
the probability that the mean of the sample is greater
than 10?
Solution:
Given 𝜇 = 8; 𝑛 = 9; 𝑎𝑛𝑑 𝜎 = 5, this indicates that 𝜇𝑥ҧ = 8.
Now, the standard error (or the standard deviation) is:
𝜎 5
𝜎𝑥ҧ = = = 1.67
𝑛 9
Example 1: A sample of size 9 is drawn from a population
with a mean of 8 and a standard deviation of 5. What is
the probability that the mean of the sample is greater
than 10?
Solution:
𝑥ҧ − 𝜇𝑥ҧ
To find the probability, we must first 𝑧=
𝜎𝑥ҧ
convert our x-value into z-value by 10 − 8
𝑧=
standardizing it using the formula: 1.67
𝑧 = 1.20
Example 1: A sample of size 9 is drawn from a population
with a mean of 8 and a standard deviation of 5. What is
the probability that the mean of the sample is greater
than 10?
Solution: 𝑃 𝑥ҧ > 10 = P z > 1.20
Now that we have already converted it = 1 − 𝜑 1.20
to its z-score value, we will then find its = 1 − 0.8849
probability by applying the four cases. = 0.1151

Therefore, the probability of getting a mean of the sample


greater than 10 is 11.49%
Example 2
A sample of size 64 is taken from a
population with 𝜇 = 10 and 𝜎 = 25. Find
the probability that:

• The mean of the sample is less than 10.2


• The sum of these 64 values is between
800 and 1200
Example 2: A sample of size 64 is taken from a
population with 𝜇 = 10 and 𝜎 = 25. Find the probability
that:
a. the mean of the sample is less than 10.2
Solution:
Given 𝜇 = 10; 𝑛 = 64; 𝑎𝑛𝑑 𝜎 = 12, this indicates that 𝜇𝑥ҧ = 10.
Now, the standard error (or the standard deviation) is:
𝜎 25
𝜎𝑥ҧ = = = 3.125
𝑛 64
Example 2: A sample of size 64 is taken from a
population with 𝜇 = 10 and 𝜎 = 25. Find the probability
that:
a. the mean of the sample is less than 10.2
Solution:
𝑥ҧ − 𝜇𝑥ҧ
To find the probability, we must first 𝑧=
𝜎𝑥ҧ
convert our x-value into z-value by 10.2 − 10
𝑧=
standardizing it using the formula: 3.125
𝑧 = 0.06
Example 2: A sample of size 64 is taken from a
population with 𝜇 = 10 and 𝜎 = 25. Find the probability
that:
a. the mean of the sample is less than 10.2
Solution:
Now that we have already converted
𝑃 𝑥ҧ < 10.2 = P z < 0.06
it to its z-score value, we will then find = 𝜑(0.06)
its probability by applying the four = 0.5239
cases.
Therefore, the probability of getting a mean of the sample
less than 10.2 is 52.39%
Example 2: A sample of size 64 is taken from a
population with 𝜇 = 10 and 𝜎 = 25. Find the probability
that:
b. the sum of these 64 values is between 800 and 1200
Solution:
Given 𝜇 = 10; 𝑛 = 64; 𝑎𝑛𝑑 𝜎 = 12, this indicates that 𝜇𝑥ҧ = 10.
We first need to convert the problem to one that involves
the sample mean. Sums of 800 and 1,200 for 64 values are
equivalent to means of:
800 1,200
𝑥1ҧ = = 12.5 𝑥ҧ2 = = 18.75
64 64
Example 2: A sample of size 64 is taken from a
population with 𝜇 = 10 and 𝜎 = 25. Find the probability
that:
b. the sum of these 64 values is between 800 and 1200
Solution:
To find the probability, we must first convert our x-value
into z-value by standardizing it using the formula:
𝑥ҧ − 𝜇𝑥ҧ 𝑥ҧ − 𝜇𝑥ҧ
𝑧1 = 𝑧=
𝜎𝑥ҧ 𝜎𝑥ҧ
12.5 − 10 18.75 − 10
𝑧= 𝑧=
3.125 3.125
𝑧 = 0.8 𝑧 = 2.8
Example 2: A sample of size 64 is taken from a population with
𝜇 = 10 and 𝜎 = 25. Find the probability that:
b. the sum of these 64 values is between 800 and 1200
Solution:
Now that we have already 𝑃 12.5 < 𝑥ҧ < 18.75 = P 0.8 < z < 2.8
converted it to its z-score = 𝜑 2.8 − 𝜑(0.8)
value, we will then find its = 0.9974 − 0.7881
probability by applying the = 0.2093
four cases.
Therefore, the probability of getting a mean of the sample
between 800 and 1200 is 20.93%
Points to Remember
Suppose that we draw samples of size n from any population with
mean 𝜇 and standard deviation 𝜎. The CLT assures us that when the
sample size n is large, then the distribution of the sample means is
𝜎
approximately normal with mean 𝜇 and standard deviation .
𝑛

For cases where the population is normally distributed, the central


limit theorem applies regardless of the sample size.

When only the sample standard deviation s is known and the sample
size is large (𝑛 ≥ 30), the CLT still applies, but with standard deviation
𝑠
.
𝑛
Example 3
A certain machine makes electric resistors having
a mean of resistance of 40 ohms. A sample of 36
resistors is taken and their combined resistance is
found to be 1422 Ω.

• What is the sampling error of the mean on this


sample?
• What is the probability that the sample of 36
resistors has a combined resistance of more than
1458 Ω if the standard deviation is 2 Ω?
Example 3: A certain machine makes electric resistors
having a mean of resistance of 40 ohms. A sample of 36
resistors is taken and their combined resistance is found to
be 1422 Ω.
a. What is the sampling error of the mean on this sample?
Solution:
Given 𝜇 = 40, this indicates that 𝜇𝑥ҧ = 40.
1422
In this case, 𝑥ҧ = = 39.5
36
Hence, the sampling error is 39.5 − 40 = −0.5
Example 3: A certain machine makes electric resistors
having a mean of resistance of 40 ohms. A sample of 36
resistors is taken and their combined resistance is found to
be 1422 Ω.
b. What is the probability that the sample of 36 resistors
has a combined resistance of more than 1458 Ω if the
standard deviation is 2 Ω?
Solution:
Since the sample is 36 which is greater 1458
𝑥ҧ = = 40.5
than 30, then we can apply CLT to solve 36
the probability.
Example 3: A certain machine makes electric resistors
having a mean of resistance of 40 ohms. A sample of 36
resistors is taken and their combined resistance is found to
be 1422 Ω.
b. What is the probability that the sample of 36 resistors
has a combined resistance of more than 1458 Ω if the
standard deviation is 2 Ω?
Solution:
Given 𝜇 = 40; 𝑛 = 36; 𝑎𝑛𝑑 𝜎 = 2, 𝜎 2
𝜎𝑥ҧ = = = 0.33
this indicates that 𝜇𝑥ҧ = 40. 𝑛 36
Example 3: A certain machine makes electric resistors
having a mean of resistance of 40 ohms. A sample of 36
resistors is taken and their combined resistance is found to
be 1422 Ω.
b. What is the probability that the sample of 36 resistors
has a combined resistance of more than 1458 Ω if the
standard deviation is 2 Ω?
Solution: 𝑥ҧ − 𝜇 𝑥ҧ
𝑧=
To find the probability, we must 𝜎𝑥ҧ
first convert our x-value into z- 40.5 − 40
𝑧=
value by standardizing it using 0.33
𝑧 = 1.5
the formula:
Example 3: A certain machine makes electric resistors having a
mean of resistance of 40 ohms. A sample of 36 resistors is
taken and their combined resistance is found to be 1422 Ω.
b. What is the probability that the sample of 36 resistors has a
combined resistance of more than 1458Ω if the standard
deviation is 2 Ω?
Solution:
Now that we have already converted it 𝑃 𝑥ҧ > 40.5 = P z > 1.5
to its z-score value, we will then find its = 1 − 𝜑(1.5)
probability by applying the four cases. = 1 − 0.9322
= 0.0668
Therefore, the probability of getting a combined resistance of
more than 1458Ω is 6.68%
PRACTICE ITEMS
1. A normal population has a mean of 70 and a standard
deviation of 12. If a random sample size of 16 is taken
from this population, compute the probability that the
sample mean is
a) Greater than 72.5
b) Less than 67
c) Between 67.5 and 72
2. A population of unknown shape has a mean of 85. You
select a sample of 40, and this sample has a standard
deviation of 5. Compute the probability that the sample
mean is
a) Less than 84
b) Between 84 and 86
c) Greater than 87
ARE THERE ANY
QUESTIONS?
Remember to study the
information from this lecture!
Objectives
At the end of the session, students are expected to:

Illustrate the Central Limit Theorem

Define the sampling distribution of the sample


mean using the Central Limit Theorem

Solves problem involving sampling


distributions of sample means.

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