Central limit theorem

Central limit theorem,

Definition of Central limit theorem:

  1. Theory of statistical regularity that under general conditions the average of data observed over time tends to be distributed as a normal distribution. Its usefulness lies in its complete generality: no matter how a variable changes, the sum of its values will show a normal distribution if enough measurements are taken. It forms the basis of the law of large numbers and was formulated by the Russian mathematician Alexandr Mikhailovich Lyapunov (1857-1918) drawing upon the work of the French mathematician Pierre-Simon Laplace (1749-1827).

  2. A theorem stating that the distribution of the sum of n terms of a given sequence of independent random variables with identical distributions and finite variance approximates a normal distribution with increasing accuracy as n increases.

How to use Central limit theorem in a sentence?

  1. The central limit theorem was especially useful in increasing our understanding of the statistical modeling position we held in our project.
  2. Using the central limit theorem will allow you to break down your companies finances and find out just how well you are doing.
  3. If you want to try and predict the future for a product you can use the central limit theorem to get a good base line.

Meaning of Central limit theorem & Central limit theorem Definition