Mini toolsDefinition
A fundamental principle stating that the sum of many independent random variables tends toward a normal distribution.
Detailed Explanation
The Central Limit Theorem states that the distribution of sample means approximates a normal distribution as sample size increases, regardless of the underlying population distribution. This approximation improves with larger sample sizes and holds for independent, identically distributed variables with finite variance.
Use Cases
Statistical inference, hypothesis testing, quality control processes, financial modeling, and machine learning algorithm design.
