20. Video: When Does the Central Limit Theorem Not Work?
When Does the CLT Not Work?
In the previous example, you saw how the Central Limit Theorem applies to the sample mean of 100 draws from a right-skewed distribution. However, it did not apply to a sample size of 3 draws from this same distribution.
In the next concepts, you will see that the with large sample sizes the sampling distribution of certain statistics will never become normally distributed. So how do we know which statistics will follow normal distributions, and which will not?
So, you might be wondering already why is the Central Limit Theorem such a big deal? In our new age of computers, it probably isn't as big of a deal, but more on this coming up soon!