Finite Population Central Limit Theorem In Sampling

The finite population central limit theorem, an extension of the central limit theorem, pertains to sampling from a finite population. In essence, this theorem establishes that as the sample size increases, the distribution of sample means taken from a finite population approaches a normal distribution. The central limit theorem, finite population, sampling distribution, and population mean are integral concepts that underpin this theorem.

Best Structure for Finite Population Central Limit Theorem

When you have a finite population and take repeated samples, the central limit theorem (CLT) states that the distribution of the sample means will be approximately normal. The best structure for the finite population CLT is as follows:

  • Assumptions:

    • The population is finite.
    • The samples are random and independent.
    • The sample size is large enough.
    • The population is normally distributed.
  • Formula:

    • The mean of the sample means will be equal to the population mean.
    • The standard deviation of the sample means will be equal to the population standard deviation divided by the square root of the sample size.
  • Example:

    • Suppose you have a population of 100 people with a mean height of 68 inches and a standard deviation of 2 inches.
    • If you take a random sample of 30 people, the mean height of the sample will be approximately normally distributed with a mean of 68 inches and a standard deviation of 2 / sqrt(30) = 0.37 inches.

Here is a table summarizing the best structure for the finite population CLT:

Assumption Formula Example
Population is finite Mean of sample means = population mean Mean height of sample = 68 inches
Samples are random and independent Standard deviation of sample means = population standard deviation / sqrt(sample size) Standard deviation of sample height = 0.37 inches
Sample size is large enough
Population is normally distributed

By following this structure, you can ensure that you are using the finite population CLT correctly.

Question 1:

What is the finite population central limit theorem?

Answer:

  • The finite population central limit theorem states that the sampling distribution of the sample mean of a random sample from a finite population is approximately normal, regardless of the shape of the population distribution.
  • The mean of the sampling distribution is the mean of the population, and the standard error of the mean is the standard deviation of the population divided by the square root of the sample size.
  • This theorem can be used to test hypotheses about the population mean or to estimate the population mean with a confidence interval.

Question 2:

Under what conditions does the finite population central limit theorem apply?

Answer:

  • The finite population central limit theorem applies when the sample size is less than or equal to 10% of the population size.
  • The population should be large enough so that the sampling fraction (n/N) is less than 0.10.
  • The samples should be random and independent.
  • The population should not be highly skewed or have outliers.

Question 3:

What are the limitations of the finite population central limit theorem?

Answer:

  • The finite population central limit theorem does not apply when the sample size is greater than 10% of the population size.
  • The theorem is less accurate when the population is highly skewed or has outliers.
  • The theorem only applies to the sampling distribution of the sample mean, not to other statistics such as the sample median or sample variance.

And that’s a wrap on the finite population central limit theorem! Thanks for sticking with us through all the formulas and explanations. We know it wasn’t always the most exciting stuff, but we hope you learned something new and valuable. If you have any lingering questions, feel free to visit our website again. We’re always happy to help. And remember, statistics is all about making sense of data, so keep practicing and you’ll be a pro in no time. Thanks again for reading, and see you soon!

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