3.6.3 The Central Limit Theorem

Question 1

what is the central limit thrm?

Answer 1

the clt states that the sum of r.v.s and the average of r.v.s are approximately normally distributed when the X_i’s are iid with finite mean and variance when n is at least 30 or large enough

this applies to any distribution type

Question 2

whats the basic gist on solving a clt problem?

Answer 2

-notice the n is BIG
- find the sum or average expectations and variances
- use those values for a normal distribution then standardize and go from there