What is the central limit theorem


Discuss the following:

(a) The quality control engineer for a furniture manufacturer is interested in the mean amount of force necessary to produce cracks in stressed oak furniture. She performs a two-tailed test of the null hypothesis that the mean for the stressed oak furniture is 650. What are Type I and Type II errors for this problem?

(b) A 95% confidence interval for is from -2 to 10. What conclusion can we make based on this confidence interval if we test Ho: µ = 0 against H1: µ ? 0 at = 0.05?

(c) What is the Central Limit Theorem? Why is it important in statistical data analysis? How is the rule of thumb used for the application of the Central Limit Theorem?

 

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