STATISTICS AND PROBABILITY

Module 7: Week 7: Third Quarter

Title of the Activity:

Central Limit Theorem

ENTRY BEHAVIOUR

Brief Introduction

This module will help you understand the concept of central limit theorem. This will
also enlightened your mind how to solve problems regarding sampling distribution of means
through central limit theorem. This will also help you to differentiate z- value from an
individual data value from z-value from a sample mean (central limit theorem).

Learning Competencies

At the end of this module, the learner should be able to;

1. Illustrates the Central Limit Theorem;

2. Defines the sampling distribution of the sample means using the
Central Limit Theorem; and
3. Solve problems involving sampling distribution of the sample mean.

Objectives

The objective of this module is for the students to illustrate central limit
theorem, apply central limit theorem in solving problems involving sampling
distribution of the sample mean.
 Let’s Recall

Let’s have a simple review.

Properties of the distribution of sample means:

1. The mean of the sample means will be the same as the population
mean.
2. The standard deviation of the sample means will be smaller than the
standard deviation of the population, and it will be equal to the
population standard deviation divided by the square root of the sample
size n.
3. The shape of the distribution of the sample means taken with
replacement from a population will approach a normal distribution.
(Central Limit Theorem).

Answer the problem below:

Consider the population consisting of the values 2, 4, 6 and 8.

a. Find the population mean, variance, and standard deviation.
b. Find all the possible sample of size 2 which can be drawn with replacement
from population.
c. Find the mean of the sampling distribution of means.
d. Find the sampling variance and the sampling error.
e. Draw the histogram of the population and sampling distribution.

Let’s Understand

CENTRAL LIMIT THEOREM

As the sample size n increases without limit, the shape of the distribution of the
sample means taken with replacement from a population with mean µ and standard
deviation ơ will approach a normal distribution. This distribution will have a mean µ and a
ơ
standard deviation of .
√𝒏

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 If the sample size is sufficiently large, the central limit theorem can be used to
answer questions about sample means in the same manner that the normal distribution
can be used to answer questions about individual values.
The formula for z values is

ഥ−µ
𝒙
𝒛= ơ
√𝒏
Points to remember in using central limit theorem:
1. When the original variable is normally distributed, the distribution of the sample
means will be normally distributed, for any sample size n.
2. When the distribution of the original variable might not be normal, a sample size of
30 or more is needed to use the normal distribution to approximate the distribution
of the sample means. The larger the sample, the better the approximation will be.

Example 1: A television network reported that children between the ages of 2 and 5 watch
an average of 25 hours of television per week. Assume the variable is normally distributed
and the standard deviation is 3 hours. If 20 children between the ages of 2 and 5 are
randomly selected, find the probability that the mean of the number of hours they watch
television will be greater than 26.3 hours. Hint: Always illustrate the normal curve.

Solution:

Step 1: Draw the normal curve

25 26.3
0 1.94

Step 2: Compute for the standard deviation of sample means.

Since the variable is approximately normally distributed, the distribution of sample

means will be approximately normal, with a mean of 25. The standard deviation of the
sample means is:
ơ 3
ơ𝑥̅ = = = 𝟎. 𝟔𝟕
√𝑛 √20
Step 3: Compute for z-value.
ഥ
𝒙−µ
𝒛= ơ
√𝒏
26.3 − 25 1.3
𝒛= =
3 0.67
√20
𝒛 = 𝟏. 𝟗𝟒 P(𝒛 > 𝟏. 𝟗𝟒) = 0.0262
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Step 4: Find the corresponding area.

Therefore, the probability of obtaining a sample mean larger than 26.3 hours is 2.62%.
Example 2: The average age of a vehicle registered in the Philippines is 8 years, or 96
months. Assume the standard deviation is 16 months. If a random sample of 36 vehicles
is selected, find the probability that the mean of their age is between 90 and 100 months.

Solution:

Step 1: Draw the normal curve

90 96 100
z1 0 z2

Step 2: Compute for the standard deviation of sample means.

ơ 16
ơ𝑥̅ = = = 𝟐. 𝟔𝟕
√𝑛 √36

Step 3: Compute for the two z-values.

ഥ−µ
𝒙
𝒛= ơ
√𝒏

90 − 96 −6 100 − 96 4
𝒛𝟏 = = 𝒛𝟐 = =
16 2.67 16 2.67
√36 √36
𝒛𝟏 = −𝟐. 𝟐𝟓 𝒛𝟐 = 𝟏. 𝟓𝟎

Summary of z - formulas and their uses:

𝑥−µ
z= used to gain information about an individual data value when the
ơ
variable is normally distributed.

𝑥̅ −µ
z= ơ used to gain information when applying the central limit theorem about
√𝑛
a sample mean when the variable is normally distributed or when the sample is 30 or
more.

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 Let’s Apply

Direction: Fill in the boxes with the correct value/s. Show your complete
solution, if necessary.
Problem: The mean score on Statistics and Probability test of STEM students is 30. The
standard deviation is 5. If the teacher administers the test to a class of 40 students, find
the probability that the mean of the sample will be between 27 and 31. Assume the variable
is normally distributed.
Solution:

Step 1: Draw the properly labelled normal curve.

Step 2: Compute the value of the standard deviation of the sample mean.

Step 3: Compute the z1 value when 𝑥̅ = 27 and z2 value when 𝑥̅ = 31.

Step 4: Find the probability that the mean of the sample will be between 27 and 31.

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 Let’s Analyze

Direction: Solve the following problem below.

1. At a large publishing company, the mean age of proof readers is 36.2 years,
and the standard deviation is 3.7 years. Assume the variable is normally
distributed.
a. If the proof reader from the company is randomly selected, find the
probability that his or her age will be between 36 and 37.5 years.
b. If a random sample of 15 proof readers is selected, find the probability that
the mean age of the proof readers in the sample will be between 36 and
37.5 years.
2. The average cholesterol content of a certain brand of eggs is 215 milligrams,
and the standard deviation is 15 milligrams. Assume the variable is normally
distributed.
a. If a single egg is selected, find the probability that the mean of the sample
will be greater than 220 milligrams.
b. If a sample of 25 eggs is selected, find the probability that the mean of the
sample will be larger 220 milligrams.

Let’s Evaluate

Direction: Solve the following problems below.

Problem 1: The average labor cost for car repairs for a large chain of car repair shops is
P520. The standard deviation is P40. Assume the variable s normally distributed.
a. If a store is selected at random, find the probability that the labor cost will range
between P450 and P530.
b. If 15 stores are elected at random, find the probability that the mean of the
sample will be between P450 and P530.
c. Which answer is larger? Explain why?
Problem 2: The average monthly salary of teachers in the Philippines is P25 000. Assume
that the salaries were normally distributed for a certain group of teachers, and the standard
deviation of this group was P2 000.
a. Find the probability that a randomly selected individual earned less than P27
000.
b. Find the probability that, for a randomly selected sample of 20 individuals, the
mean salary was less than P27 000.
c. Why is the probability for b is higher than the probability for a?

Problem 3: Assume that the mean systolic blood pressure of normal adults is 120
millimeters of mercury (mm Hg) and the standard deviation is 5.6. Assume that the variable
is normally distributed.
a. If an individual is selected, find the probability that the individual’s pressure will
be between 118 and 121.8 mm Hg.
b. If a sample of 20 adults is randomly selected, find the probability that the sample
mean will be between 118 and 121.8 mm Hg.
c. Why is the answer to a is smaller than the answer in b?

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