4/7/23, 11:49 AM Central Limit Theorem

Central Limit Theorem

Posted by Ted Hessing

The Central Limit Theorem states that the distribution of the sample means approaches normal regardless of the shape

of the parent population.

Sample means (s) will normally be more distributed around (µ) than the individual readings (Xs). As n– the sample size–

increases, the sample averages (Xs means) will approach a normal distribution with mean (µ).

So, don’t worry if your samples are all over the place. The more sample sets you have, the sooner the averages of those

sets will approach a normal distribution with a mean of (µ).

Significance of Central Limit Theorem

The Central Limit Theorem is important for inferential statistics because it allows us to safely assume that the sampling

distribution of the mean will be normal in most cases. This means that we can take advantage of statistical techniques

that assume a normal distribution.

The Central Limit Theorem is one of the most profound and useful results in all statistics and probability. The large

samples (more than 30) from any sort of distribution of the sample means will follow a normal distribution.

The spread of the sample means is less (narrower) than the spread of the population you’re sampling from. So, it does

not matter how the original population is skewed.

The means of the sampling distribution of the mean is equal to the population mean µx̅ =µX

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The standard deviation of the sample means equals the standard deviation of the population divided by the square

root of the sample size: σ(x̅ ) = σ(x) / √(n)

Assumptions
Samples must be independent of each other

Samples follow random sampling

If the population is skewed or asymmetric, the sample should be large (for example, a minimum of 30 samples).

Why Central Limit Theorem is important

Central Limit Theorem allows the use of confidence intervals, hypothesis testing, DOE, regression analysis, and other

analytical techniques. Many statistics have approximately normal distributions for large sample sizes, even when we are

sampling from a distribution that is non-normal.

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In the above graph, subgroup sizes of 2, 8, 16, and 32 were used in this analysis. We can see the impact of the

subgrouping. In figure 2 (n=8), the histogram is not as wide and looks more “normally” distributed than Figure 1. Figure

3 shows the histogram for subgroup averages when n = 16, it is even more narrow and it looks more normally

distributed. Figures 1 through 4 show, that as n increases, the distribution becomes narrower and more bell-shaped -

just as the central limit theorem says. This means that we can often use well-developed statistical inference procedures

and probability calculations that are based on a normal distribution, even if we are sampling from a population that is

not normal, provided we have a large sample size.

Unimodal Distribution
Mode is one of the measures of central tendency. Mode is the value that appears most often in a set of data values or a

frequent number. The Unimodal distribution will have only one peak or only one frequent value in the data set. In other

words, Unimodal will have only one mode, the values increase first and reach to peak (i.e. the mode or the local

maximum) and then decreases.

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The normal distribution is the best example of a Unimodal distribution. Similarly, Bimodal distribution means there are

two different modes, and multimodal means more than two different modes.

Central Limit Theorem Examples

Case 1: Less than

Example: A population of 65 years male patients with blood sugar was 100 mg/dL with a standard deviation of 15

mg/DL. If a sample of 4 patients’ data were drawn, what is the probability of their mean blood sugar being less than 120

mg/dL?

µ = 100

x̅ = 120

n=4

σ =15

Compute P(X<120): z= x̅ - µ/ σ/√n = 120-100/15/√4=20/7.5=2.66

P(x<120) = z(2.66) = 0.9961 = 99.61%

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Hence, the probability of mean blood sugar is less than 120 mg/dL is 99.61%

Case 2: Between

Example: A population of 65 years male patients with blood sugar was 100 mg/dL with a standard deviation of 20

mg/DL. If a sample of 9 patients’ data were drawn, what is the probability of their mean blood sugar being between 85

and 105 mg/dL?

First, compute P(x<105)

µ = 100

x̅ = 105

n=9

σ =20

Compute the Z score z= x̅ - µ/ σ/√n = 105-100/20/√9=5/6.67=0.75

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P(x<105) = z(0.75) = 0.7734 = 77.3%

Then, compute P(x<85)

µ = 100

x̅ = 85

n=9

σ =20

Compute the Z score z= x̅ - µ/ σ/√n = 85-100/20/√9=-15/6.67=-2.24

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P(x<85) = z(-2.24) = 0.0125 = 1.25%

Since we are looking for blood sugar between 85 and 105 mg/dL P(85<x<105) = 77.3-1.25 = 76.05%

Hence, the probability of mean blood sugar is between 85 and 105 mg/dL is 76.05%

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Case 3: Greater than

Example: A population of 65 years male patients with blood sugar was 100 mg/dL with a standard deviation of 20

mg/DL. If a sample of 16 patients’ data were drawn, what is the probability that their mean blood sugar is more than 90

mg/dL?

µ = 100

x̅ = 90

n=16

σ =20

Compute the Z score z= x̅ - µ/ σ/√n = 90-100/20/√16=-10/5=-2

P(x<90) = z(-2.0) = 0.0228 = 2.28%

Since we are looking for blood sugar of more than 90 mg/dL =100%-2.28%=97.72%

Hence, the probability of mean blood sugar greater than 90 mg/dL is 97.72%

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Jarque- Bera analysis.

Wikipedia has a good article here:

Central Limit Theorem Videos

Central Limit Theorem

Central Limit Theorem Definition

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Central limit theorem less than example 2

Central Limit Theorem Example

Central Limit Theorem Greater Than Example #3

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Authors

Ted Hessing

I originally created SixSigmaStudyGuide.com to help me prepare for my own Black belt exams. Overtime I've

grown the site to help tens of thousands of Six Sigma belt candidates prepare for their Green Belt & Black Belt

exams. Go here to learn how to pass your Six Sigma exam the 1st time through!

View all posts

Ramana PV

View all posts

This entry was posted in Measure and tagged ASQ, Black Belt, Green Belt, IASSC, Villanova. Bookmark the

permalink.

Comments (6)

Md Afzalul Karim 
June 8, 2020 at 7:33 am

Ted,

How did she get 34.13% on this problem ? can you please explain?

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Reply

Ted Hessing 
June 8, 2020 at 7:33 am

You should look up positive Z here a she states.

Remember, you’re looking for distance away from the center. Look at the chart you pasted in.

See how the left tail is shaded? You want the opposite part shaded; the center to the limit.

Reply

Maria Churchwell
October 11, 2020 at 12:00 pm

Hi ,

I am really struggling with the video example (3rd video at approx. 1.45 min.), as it states that there are no

negative Z scores and that we just look up a positive value in positive table. But there is a negative Z table and

it gives you significantly different values, so the result is very different too. It is very confusing.

Am i right in thinking if you get a negative Z score you need to look it up in negative table – Left Tail Area?

Thank you

Maria

Reply

Ted Hessing 
October 12, 2020 at 9:42 am

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Hi Maria,

Thanks for the question. We normally only support the questions in our question bank with the

reference pages and videos for help but I wanted to provide some clarity here.

That video is not very straight forward.

First, yes, there certainly can be negative z scores. A negative z-score reveals the raw score is

below the mean average. For example, if a z-score is equal to -2, it is 2 standard deviations below

the mean.

Second, in the video she’s showing that you can adapt a positive table (if that’s the only one you

have). Notice that she comes up with that 90%+ figure then subtracts it from 100%? She’s taking

advantage of the fact that the z scores are from a normal (and hence symmetric) distribution.

It would have been much more straight forward for her to have simply used the negative z table.

Reply

Lakshman Raghavendra
December 14, 2021 at 3:13 pm

Hi Ted,

The standard deviation of the sample means equals the standard deviation of the population divided by the

square root of the sample size: σ(x̅ ) = σ(x) / √(n)

This should be “s/sqrt(n)”, i.e. sample standard deviation as we don’t know population standard deviation.

This is also standard error, is my understanding correct?

Reply

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Ramana PV 
December 20, 2021 at 2:34 pm

Hi Lakshman,

Suppose we are sampling from a population with a finite mean and a finite standard-

deviation(sigma). Then Mean and standard deviation of the sampling distribution of the sample

mean can be given as:

µ(x̅ )=µ and σ(x̅ ) = σ(x) / √(n).

Thanks

Reply

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