Example 1: The population from which samples are selected is {1,2,3,4,5,6}. This population has a mean of 3.5 and a standard deviation of 1.70783. The next display shows a histogram of the population.

Central Limit Theorem: A sampling distribution of the mean is approximately normally distributed if the sample size is sufficiently large. This is true no matter what the population distribution is.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

You're currently following this author! Want to unfollow? Unsubscribe via the link in your email. Follow Andy Kiersz Every time Andy publishes a story, you’ll get ...

Flickr via Google Images Standard deviation is a concept that's thrown around frequently in finance. So what is it? When working with a quantitative data set, one of the first things we want to know ...