Question

The mean housing price for an area is $135,000 with a standard of $45,000 but is not normally distributed. According to the Central Limit Theorem what would we need to make sure is true about our sample in order to use normal distribution

Answer 1

A sample size greater than 30

Step-by-step explanation: The central limit theorem proffers the conditions necessary to obtain a normal or bell shaped distribution. It defines normal distribution in terms of mean, standard deviation and sample size. The sample size is a very important factor in determining the shape of a distribution.

Thus with a population having mean and standard deviation stated, in other to make use of or assume normal distribution, the sample size must be large. According tho the central limit theorem, a size of greater than 30 is deemed to be large enough. As the Same size increases, the sample mean converges to the value of the population mean.