Central Limit Theorem and Standard Error
Central Limit Theorem and Standard Error: what to notice and how to work it
What to notice first
Common student mistake
Key formulas and cues
A reliable path
- Identify the questionDecide whether you need center, spread, shape, or association.
- Use the right displayChoose a histogram, box plot, scatter plot, or summary statistic.
- Write the meaningExplain what the statistic says about the data set.
Worked examples
Find IQR
- IQR measures the middle 50%.
- Subtract Q1 from Q3.
- 20 – 8 = 12.
Read association
- As x increases, y tends to increase.
- That is a positive association.
- A best-fit line should have positive slope.
Try one before moving on
Central Limit Theorem and Standard Error: pop-up practice
Central Limit Theorem and Standard Error – Example 1:
Central Limit Theorem and Standard Error – Example 2:
Solution: First, find the mean of the given data.
Mean\(=\frac{4+8+12+16+20}{5}=12\)
Now, the standard deviation can be calculated as;
\(S=\frac{Summation\:of\:difference\:between\:each\:value\:of\:given\:data\:and\:the\:mean\:value}{Number\:of\:values}\)
\(S=\sqrt{\frac{\left(4-12\right)^2+\left(8-12\right)^2+\left(12-12\right)^2+\left(16-12\right)^2+\left(20-12\right)^2}{5}}\)
\(=5.65\)
So, use the \(SE\) formula: \(SE=\frac{σ}{\sqrt{n}}\)
\(SE=\frac{5.65}{\sqrt{5}}= 2.52\)
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