Central Limit Theorem (CLT)

The Central Limit Theorem states that as the sample size increases above a certain threshold, the frequency distribution of sample means follows a normal distribution irrespective of the underlying distribution of the population.

  • For any population distribution, threshold sample size > 30 will satisfy CLT
  • For slightly skewed/fairly symmetric population distribution, threshold sample size > 15 will satisfy CLT
  • For normal population distribution, any sample size will satisfy CLT


 

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