Understanding the Central Limit Thereom (CLT)

Now that we’ve learned about sampling, now’s the time to introduce one of the most important concepts in classical statistics – the Central Limit Thereom (CLT).

The CLT

Measuring the center of data is not as simple as just calculating the mean, median, or mode. The CLT states that regardless of the original population distribution’s shape, when we repeatedly take samples from that population and each sample is sufficiently large, the distribution of the sample means will approximate a normal distribution. This approximation becomes more accurate as the size of each sample becomes larger. This theorem plays a crucial role in measuring centrality by allowing us to make reliable estimates using these measures. In turn, the CLT enables us to estimate the population mean with greater accuracy, making the mean a powerful tool for summarizing data. It also indirectly influences the estimation of the median and...