Day 7 - Central Limit theorem
Central Limit Theorem
The central limit theorem states that the distribution of means of samples taken from a large population, with replacement, approaches a Normal distribution, even if the population is not normally distributed.
One of the most important feature of the theorem is that the mean of the sample will be the mean of the entire population itself. If we calculate the mean of multiple samples of the population, add them up, and find their average, the result will be the estimate of the population mean.
The same applies when using standard deviation. If you calculate the standard deviation of all the samples in the population, add them up, and find the average, the result will be the standard deviation of the entire population.
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