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The Central Limit Theorem (CLT) is a theorem that describes the fact that if a number of samples are taken from a population, the distribution of the means of the samples will be normal. This is true for all different distributions, whether or not the population is normal or something else. The main exception to this is that the theorem does not work particularly well if the samples are small (<30) and the original population is not distributed normally.

The sample means will be distributed with a mean equal to the population mean, and with variance equal to the variance of the population divided by the size of each sample.

This can sound confusing when first working it out, but once it makes sense it is very useful in statistics. It is the basis for confidence intervals and hypothesis testing, as well as other statistical tests.

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Q: Describe the central limit theorem and give an example of how it can be used in statistics?
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