Central limit theorem,
Definition of Central limit theorem:
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).
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?
- The central limit theorem was especially useful in increasing our understanding of the statistical modeling position we held in our project.
- Using the central limit theorem will allow you to break down your companies finances and find out just how well you are doing.
- 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