SECTION 6.3 Parameters and Statistics 379
Simulation 4. Let’s take 100 samples of the mean (where each mean
is computed from 50 observations) from distribution having the same
density function as above.
We display the corresponding histogram.
Again, note the tendency toward a normal distribution with a rela-
tively narrow spread (small standard distribution).
The above is codified in the “Central Limit Theorem:”Central Limit Theorem. The sample meanXtaken fromnsamples
of a distribution with meanμand varianceσ^2 has a distribution which