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Central Limit Theorem Overview

Jul 14, 2025

Overview

This lecture covers when and how to apply the Central Limit Theorem (CLT) to sample means, including required conditions and calculation of sampling distribution characteristics.

Central Limit Theorem Conditions

  • Randomness: The sample must be randomly selected.
  • Normality: Either the population is normally distributed, or the sample size is large enough (usually n > 25).
  • Population information: If population shape is not given, normality cannot be assumed unless supported by sample size.
  • If both population normality and large sample size conditions fail, CLT cannot be applied.
  • If the population is explicitly normal, CLT applies regardless of sample size.
  • Large Population: Population should be at least 10 times the sample size.

Application to Sample Problem

  • Sample: 10 randomly selected students; population mean = 73, population standard deviation = 7.8.
  • Initial check: Population shape not given, sample size (n=10) too small for CLT by sample size rule.
  • With additional info that population is normal, CLT conditions are satisfied even for n=10.
  • Population size (over 100 students) satisfies large population condition.

Sampling Distribution Characteristics

  • Shape: Normal, due to normal population shape.
  • Center: Mean of sampling distribution is the population mean (73 points).
  • Spread: Standard error calculated as population standard deviation divided by the square root of sample size.
  • Calculation: 7.8 / √10 ≈ 2.47 points.
  • Interpretation: The mean score for a sample of 10 students is expected to be 73, with a standard error of 2.47 points.

Key Terms & Definitions

  • Central Limit Theorem (CLT) — Describes the shape, center, and spread of sampling distributions as normal under certain conditions.
  • Standard Error — The standard deviation of the sampling distribution of the sample mean (σ/√n).
  • Sampling Distribution — Distribution of sample means over repeated samples from the same population.

Action Items / Next Steps

  • Practice using CLT formulas for center and spread.
  • Learn to check and justify all three CLT conditions for sample means.
  • Review related problems in Sections 9.1 and 9.2 for exam preparation.