Describe what is Central Limit TheoremSolutionThe central li

Describe what is Central Limit Theorem

Solution

The central limit theorem states that the sampling distribution of any distribution, if you do it so many times, will be approximately normal, regardless of the underlying distribution.

For example, you have a uniformly distributed variable. Note that this is not a normal distribution. But say, if you sample 5 values at a time, get the mean if these 5, and do this process so many times, you will notice that the distribution of the means you will get is no longer uniformly disitrbuted; it is now more like a normal distribution. That\'s the central limit theorem.