1.

Explain Central Limit Theorem?

Answer»

As the sample size increases, the SAMPLING DISTRIBUTION of sample means approaches a normal distribution.

If all possible random samples of size n are selected from a population with MEAN μ and standard deviation σ, the mean of the sample means is denoted by μ x̄ , so,

μ x̄ = μ

the standard deviation of the sample means is:

σ x̄ = σ⁄√ n

As the sample size increases, the sampling distribution of sample means approaches a normal distribution.

If all possible random samples of size n are selected from a population with mean μ and standard deviation σ, the mean of the sample means is denoted by μ x̄ , so,

μ x̄ = μ

the standard deviation of the sample means is:

σ x̄ = σ⁄√ n



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