Activity 17

MATH 216: Statistical Thinking

Central Limit Theorem and Standard Error

Time Allocation: 15 minutes total (5 min reading, 10 min individual work)

Part 1: Conceptual Understanding (3 minutes)

Instructions: Answer the following questions about the Central Limit Theorem:

  1. What is the Central Limit Theorem and why does it allow us to use normal distributions for inference?
  1. How does the standard error relate to sample size and population standard deviation?
  1. Why can we apply the CLT to non-normal populations (uniform, exponential) with sufficiently large samples?

Central Limit Theorem for Different Population Distributions

Part 2: Standard Error Calculations (4 minutes)

Formula: Standard error \(\sigma_{\bar{x}} = \frac{\sigma}{\sqrt{n}}\)

Calculate the following:

  1. Steel sheets: Population \(\sigma = 14.43\) mm, sample size \(n = 36\)

    Standard error = mm

  2. Population study: \(\mu = 80\), \(\sigma = 6\), \(n = 36\)

    \(\mu_{\bar{x}}\) = , \(\sigma_{\bar{x}}\) =

  3. College students: \(\mu = 25\) years, \(\sigma = 9.5\) years, \(n = 125\)

    \(\mu_{\bar{x}}\) = , \(\sigma_{\bar{x}}\) =

  4. Customer arrivals (exponential): \(\mu = 5\) min, \(\sigma = 5\) min, \(n = 50\)

    \(\mu_{\bar{x}}\) = , \(\sigma_{\bar{x}}\) =

Show your work for problems 1 and 4:

Effect of Sample Size on Standard Error

Part 3: Probability Applications (3 minutes)

Using the Central Limit Theorem, calculate the following probabilities:

  1. Steel sheets: Uniform(150, 200) mm, \(\mu = 175\) mm, \(\sigma = 14.43\) mm, \(n = 36\)

    \(P(\bar{x} > 180\) mm) =

  2. Population study: \(\mu = 80\), \(\sigma = 6\), \(n = 36\)

    \(P(\bar{x} > 82)\) =

  3. College students: \(\mu = 25\), \(\sigma = 9.5\), \(n = 125\)

    \(P(\bar{x} > 26)\) =

Show your work for problem 1 (calculate z-score and use normal table):

Probability Calculations Using Standard Normal Distribution

Critical Thinking: Why can we use the normal distribution for the steel sheets example even though the population has a uniform (non-normal) distribution?