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Central Limit Theorem

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Central Limit Theorem

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  • Hello Selena! Yes, Sure
  • Hello John! Can I ask you a question?
  • Yes, I remember the appropriate tool when the Variance is Known is z-test, To determine whether two population means are different when the variances are known and the sample size is large.
  • Do you remember on how to determine the appropriate tool when the Variance is Known is used?
  • I remember when the Variance  is Unknown, the appropriate test statistic to used is t-test.
  • How about when the Variance is Unknown is used what is appropriate tool?
  • Selena, I also have a question Do you remember what our teacher says about how to determine the appropriate tool when CENTRAL LIMIT THEOREM is used?
  • Yes, I remember she saysWhen applying the Central Limit Theorem (CLT), the appropriate test statistic is z-testby replacing population standard deviation (σ) by sample standard deviation (s) in the formula.
  • Oh thank you! Also do you remember when the Z-test is the best tool to use in the CENTRAL LIMIT THEOREM?
  • Yes, It is used when:-The z has a standard normal distribution if the population is normally distributed or the sample size is large, and the true population meansμ = μo-The sample size is extremely large and the variance (σ2) is known or unknown.-When the value of is unknown, the sample standard deviation (s) can be used to approximate the population standard deviation (σ).
  • Thank you so much, Selena, for your help!
  • You're welcome and thank you also, John! It's nothing!
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