Explain Central limit theorem

Data Science Interview QuestionsCategory: Data ScienceExplain Central limit theorem
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MockInterview Staff answered 5 years ago

The CLT states that the arithmetic mean of a sufficiently large number of iterates of independent random variables will be approximately normally distributed regardless of the underlying distribution. i.e: the sampling distribution of the sample mean is normally distributed.
– Used in hypothesis testing
– Used for confidence intervals
– Random variables must be iid: independent and identically distributed
– Finite variance
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