The Central limit theorem (CLT) states that if the population is normally distributed and samples are selected randomly from that population, then the sample means are also uniformly distributed. I.e. the distribution of means piles up at the centre. The size of the sample has to be sufficiently large, say above 30 for this to take place.
In short, if samples of size “n” (the sample size should be > 30) are drawn randomly from a population with mean “µ”, and a standard deviation of “σ”, the sample means are approximately normally distributed, regardless of the shape of the population.
Therefore,
Browse the definition and meaning of more terms similar to Central limit theorem. The Management Dictionary covers over 7000 business concepts from 6 categories.
Search & Explore : Management Dictionary
Quizzes!
Related Business Content
Top Companies Lists 2018
