Central Limit Theorem
"The central limit theorem (CLT) is one of the great results of mathematics." (Chapter 18 in ) It explains the ubiquitous occurrence of the normal distribution in nature.
The theorem states that the average of many independent and identically distributed random variables with finite variance tends towards a normal distribution irrespective of the distribution followed by the original random variables. Formally, let be independent random variables with mean and variance Then the sequence of random variables
converges in distribution to a standard normal random variable.
Read more about this topic: Probability Theory
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