
There are two basic ways to consider the central limit theorem. First consider a random variable, X, which has a mean, μ, and variance σ2. If we take a random sample from f(X) of size n and calculate the sample mean, X̄, then as n increases the distribution of the sample means, X̄’s approaches a normal distribution with mean, μ, and variance σ2/√n̄. The original data, X, may have any distribution and when n is suitably large the distribution of the averages will approach a normal distribution. [Read more…]