Central Limit Theorem

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The Central Limit Theorem says that if you have a random sample and the sample size is large enough (usually bigger than 30), then

eq001

where Z is the standard Normal distribution with m = 0 and s = 1. This comes in really handy when you haven't a clue what the distribution is or it is a distribution you're not used to working with like, for instance, the Gamma distribution.

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