CENTRAL LIMIT THEOREM: STATEMENT Consider a large population: Population mean= Y μ Population variance = Y 2 σ Take all possible samples of size n from this population and compute the sample means Y . The Central Limit Theorem states the following: 1. The mean of the sampling distribution of the mean is equal to the population mean (i.e. Y Y E = ) ( 2. The variance of the sampling distribution of the mean is equal to the population variance divided by the sample size (n) i.e. n Y Y / 2 2 = (Therefore the standard deviation (or standard error) of the mean is the population standard deviation divided by the square root of the number of observations i.e.
This is the end of the preview.
access the rest of the document.