# Central Limit Theorem (CLT)

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## Definition of 'Central Limit Theorem (CLT)'

The Central Limit Theorem (CLT) is a fundamental theorem in probability theory that states that, given a sufficiently large sample size from a population with a finite mean and variance, the distribution of sample means will be bell-shaped and symmetric, also known as a normal distribution. The theorem is important in statistics because it allows us to make inferences about the population mean based on the sample mean.

The CLT can be used to make inferences about the population mean in a variety of situations. For example, we can use it to determine the probability that a sample mean will be within a certain range of the population mean. We can also use it to construct confidence intervals for the population mean.

The CLT is a powerful tool that can be used to make informed decisions about the population mean. However, it is important to note that the theorem only applies when the sample size is sufficiently large. If the sample size is too small, the distribution of sample means may not be bell-shaped and symmetric.

In addition to the CLT, there are a number of other important theorems in probability theory. These theorems can be used to make inferences about the probability of events occurring. For example, the law of large numbers states that the average of a large number of independent random variables will converge to the expected value of the random variable. This theorem can be used to make inferences about the probability of an event occurring in the long run.

Probability theory is a branch of mathematics that deals with the study of random events. It is used in a variety of fields, such as statistics, finance, and engineering. The CLT is one of the most important theorems in probability theory. It allows us to make inferences about the population mean based on the sample mean.

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