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- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN : CENTRAL LIMIT THEOREM
- Finaly, when applying the Central Limit Theorem (CLT), the appropriate test statistic is the z-test, which is obtained by substituting sample standard deviation (s) in the formula for population standard deviation (σ).
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- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN : CENTRAL LIMIT THEOREM
- REMEMBER:Z-test is the appropriate tool to used in central limit theorem when:The z has a standard normal distribution if the population is normally distributed or the sample size is high, and the actual population means μ = μ0.The sample size is enormous, and the varience(σ2) is either known or unknown.When the value of is unknown, the sample standard deviation (s) can be used to approximate the population standarg deviation (σ)
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- Z-test T-testn ≥ 30, σ is known n 30 , σ is not knownn ≥ 30, σ is known (Central n ≥ 30, s is knownLimit Theorem)n 30, σ is known
- Thats concludes ours lesson for today. Thank you for your time.
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