Why is the Central Limit Theorem important in statistics?
- It provides the basis for linear regression.
- It simplifies the analysis of data and allows for easier predictions.
- It's not important; it's just a theory.
- It's only used in quantum physics.
The Central Limit Theorem (CLT) is important in statistics because it allows statisticians to make inferences about the population mean and standard deviation based on the properties of the sample mean. It simplifies many aspects of statistical inference by allowing us to make approximate calculations that are sufficiently accurate for large sample sizes.
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