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Central Limit Theorem

The document explains the Central Limit Theorem (CLT), which states that the sampling distribution of the sample mean approaches a normal distribution as the sample size increases, regardless of the population's distribution. It provides examples and calculations demonstrating how to apply the CLT to find probabilities related to sample means. Additionally, it includes practice problems for further understanding of the concepts presented.

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heavenpangilinan091
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9 views17 pages

Central Limit Theorem

The document explains the Central Limit Theorem (CLT), which states that the sampling distribution of the sample mean approaches a normal distribution as the sample size increases, regardless of the population's distribution. It provides examples and calculations demonstrating how to apply the CLT to find probabilities related to sample means. Additionally, it includes practice problems for further understanding of the concepts presented.

Uploaded by

heavenpangilinan091
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Central Limit Theorem

Objectives • Illustrate the Central Limit Theorem

At the end of the session, • Define the sampling distribution of the


students are expected to:
sample mean using the Central Limit
Theorem.

• Solves problems involving sampling


distributions of the sample mean.
The power of
communication
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 standard deviation
𝜎
.
𝑛
When is the CLT application?
• 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 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
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
𝜇𝑥ҧ = 10, 𝜎 = 25, 𝑛 = 64

𝜎 25
𝜎𝑥ҧ = = = 3.125
𝑛 64

10.2 − 10
𝑧= = 0.06
3.125

𝑃 𝑥ҧ < 10.2 = 𝜑 𝑧 < 0.06 = 0.5239


A sample of size 64 is taken from a population with
𝜇 = 10 and 𝜎 = 25. Find the probability that:
The sum of these 64 values is between 800 and 1200
𝜇𝑥ҧ = 10, 𝜎 = 25, 𝑛 = 64

800 1200
𝑥ҧ1 = = 12.5 𝑥ҧ2 = = 18.75
64 64

12.5 − 10 18.75 − 10
𝑧1 = = 0.8 𝑧2 = = 2.8
3.125 3.125
𝑃 12.5 < 𝑥ҧ < 18.75 = φ(0.8 < 𝑧 < 2.8)

𝑃 0.8 < 𝑧 < 2.8 = 0.9974 − 0.7881 = 0.2093


Example 2
A population of unknown shape has a
mean of 75. A sample of 40 is selected
from this population, which turns out
having a standard deviation of 5.
Calculate the probability than the
sample mean is:

• Greater than 74
• Between 76 and 77
A population of unknown shape has a mean of 75. A sample of 40 is
selected from this population, which turns out having a standard
deviation of 5. Calculate the probability than the sample mean is:
The mean of the sample is greater than 74
𝜇𝑥ҧ = 75, s = 5, 𝑛 = 40

𝑠 5 10
𝜎𝑥ҧ = = =
𝑛 40 4

74 − 75
𝑧= = −1.26
10
4

𝑃 𝑥ҧ > 74 = 1 − 𝜑 −1.26 = 1 − 0.1038 = 0.8962


A population of unknown shape has a mean of 75. A sample of 40 is
selected from this population, which turns out having a standard
deviation of 5. Calculate the probability than the sample mean is:
Between 76 and 77
𝜇𝑥ҧ = 75, 𝜎 = 5, 𝑛 = 40

76 − 75 77 − 75
𝑧1 = = 1.26 𝑧2 = = 2.53
10 10
4 4

𝑃 76 < 𝑥ҧ < 77 = 𝑃(1.26 < 𝑧 < 2.53)

𝑃(1.26 < 𝑧 < 2.53) = 0.9943 − 0.8962 = 0.0981


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 approximately normal with mean 𝜇
𝜎
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
𝑠
(𝑛 ≥ 30), the CLT still applies, but with standard deviation .
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?
What is the sampling error of the mean on this
sample?
1422
In this case, 𝑥ҧ = = 39.5
36

Hence, the sampling is 39.5 − 40 = −0.5


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?
Since the sample size is 36, which is greater than 30, the CLT applies.
1458
𝑥ҧ = = 40.5
36
2
𝜇𝑥ҧ = 40 and 𝜎𝑥ҧ = = 0.33
36

40.5 − 40
𝑧= = 1.5
0.33

𝑃 𝑥ҧ > 40.5 = φ 𝑧 > 1.5 = 1 − 0.9332 = 0.0668


Practice Problems
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
Thank you

Brita Tamm
502-555-0152
[email protected]
www.firstupconsultants.com

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