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Central Limit Theorem: When Sample Size Is Large ( 30), The Average of

The central limit theorem states that when the sample size is large (≥30), the sample mean will be approximately normally distributed, even if the population is not normally distributed. Specifically, the sample mean (X̅) will have a normal distribution with a mean equal to the population mean (μ) and a variance equal to the population variance (σ2) divided by the sample size (n). As an example, the number of flaws in a glass sheet has a Poisson distribution. For 100 sheets: (1) the average flaws per sheet is normally distributed with mean 0.5 and variance 0.005, (2) the probability the average is between 0.45-0.55 is 0.5222,

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161 views

Central Limit Theorem: When Sample Size Is Large ( 30), The Average of

The central limit theorem states that when the sample size is large (≥30), the sample mean will be approximately normally distributed, even if the population is not normally distributed. Specifically, the sample mean (X̅) will have a normal distribution with a mean equal to the population mean (μ) and a variance equal to the population variance (σ2) divided by the sample size (n). As an example, the number of flaws in a glass sheet has a Poisson distribution. For 100 sheets: (1) the average flaws per sheet is normally distributed with mean 0.5 and variance 0.005, (2) the probability the average is between 0.45-0.55 is 0.5222,

Uploaded by

Suruzzaman Shahin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Central limit theorem

Central limit theorem: When sample size is large (≥30), the average of
a set of independent identically distributed random variables ( 𝑋̅ ) is
always approximately normally distributed with mean population mean
and variance population variance divided by sample size. i.e
𝜎2
̅
When n is large, 𝑋 ~ N(𝜇, )
𝑛
𝜎2
if 𝑋̅ ~ N(𝜇, ) it indicates that
𝑛
̅
E(𝑋) = 𝞵
X1 + X2 + … + Xn
⇒ E( )=𝞵
𝑛
1
⇒ E(X1 + X2 + … + Xn) = 𝞵 [Formula, E(cx)= cE(x)]
𝑛
⇒ E(X1 + X2 + … + Xn) = n𝞵
⇒ E(∑𝑛𝑖=1 𝑋𝑖 ) = n𝞵

𝜎 2
V( 𝑋̅ ) =
𝑛
X1 + X2 + … + Xn 𝜎2
⇒ V( )=
𝑛 𝑛
1 𝜎2
⇒
𝑛 2 V(X1 + X2 + … + Xn) = 𝑛
[Formula V(cX) = c2V(X)]
𝜎2
⇒ V(X1 + X2 + … + Xn) = n2.
𝑛
2
⇒ V(X1 + X2 + … + Xn) = n𝜎
⇒ V(∑𝑛𝑖=1 𝑋𝑖 ) = n𝞼2

i.e ∑𝑛𝑖=1 𝑋𝑖 ~ N(n𝞵, n𝞼2)

Example: The number of flaws in a glass sheet has a Poisson distribution


with a parameter λ = 0.5. a) What is the distribution of the average
number of flaws per sheet in 100 sheets of glass? b) Calculate the
probability that this average is between 0.45 and 0.55. c) What is the
distribution of the total number of flaws in 100 sheets of glass? d)
Calculate the probability that there are fewer than 40 flaws in 100 sheets
of glass?
Solution: The probability mass function of Poisson distribution is
𝑒 −0.5 0.5𝑥
P(X=x) = x=0,1,2,3…
𝑥!
Expectation E(X) = 0.5
Variance V(X) = 0.5

a) The distribution of the average number of flaws per sheet in 100


sheets of glass follows normal distribution with mean = 0.5
0.5
variance =
100
0.5
i.e 𝑋̅ ~ N(0.5, )
100

b) P(0.45 < 𝑋̅ <0.55)


0.45−0.5 𝑋̅−0.5 0.55−0.5
= 𝑃( < < )
0.5 0.5 0.5
√ √ √
100 100 100

= P(-0.707<Z<0.707)
= F(.707) – F(-.707)
= 0.7611- 0.2389
= 0.5222
c) The distribution of the total number of flaws in 100 sheets of glass
X1 + X2 + … + X100 ~ N(100*0.5, 100*0.5)
=∑100
𝑖=1 𝑋𝑖 ~ N(50,50)

∑100
𝑖=1 𝑋𝑖 −50 40−50
𝑑) 𝑃(∑100
𝑖=1 𝑋𝑖 <40) = P( < ) = P(Z<-1.41) = F(-1.41)
√50 √50
= 0.0793

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