🚫 Central Limit Theorem

= the phenomenon that the sampling distribution of the sample ⌀ Mean approaches a 🔔 Normal distribution

📖 Example:

bigger N → narrower distribution ![[CleanShot 2021-05-04 at 11.27.06@2x.png|500]]

Sample SD

The sample σ Standard deviation underestimates the population SD σ → divide through by N-1 (N = sample size)

Use case

• when you only have small amounts of data
• → good alternative to 🍔 Law of large numbers