17. Video: Two Useful Theorems - Central Limit Theorem

The Central Limit Theorem states that with a large enough sample size the sampling distribution of the mean will be normally distributed.

The Central Limit Theorem actually applies for these well known statistics:

1. Sample means (\bar{x})
2. Sample proportions (p)
3. Difference in sample means (\bar{x}_1 - \bar{x}_2)
4. Difference in sample proportions (p_1 - p_2)

And it applies for additional statistics, but it doesn't apply for all statistics! . You will see more on this towards the end of this lesson.