What is the practical utility of the central limit theorem in applied

Question

What is the practical utility of the central limit theorem in applied statistics?

30 Sep 2022

Answer :

Word Count : 450

The central limit theorem (CLT) states that the distribution of a sample variable approximates a normal distribution (i.e., a “bell curve”) as the sample size becomes larger, assuming that all samples are identical in size, and regardless of the population's actual distribution shape.

According to the central limit theorem, the mean of a sample of data will be closer to the mean of the overall population in question, as the sample size increases, notwithstanding the actual distribution of the data. In other words, the data is accurate whether the distribution is normal or aberrant.

As a general rule, sample sizes of around 30-50 are deemed sufficient for the CLT to hold, meaning that the ________ ________ _____ ____ ____ ______ _____ ______ ________.
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