Central Limit Theorem

Glossary Section: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A mathematically provable principle about obtaining means of samples that has two major ramifications:
- The standard deviation of averages of samples from the population will be approximately equal to the standard deviation of the population divided by the square root of the sample size.
- Regardless of the shape of the original distribution (even for very non-normal distributions such as exponential distributions), the distributions of averages of samples from the population approach the shape of a normal distribution.

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