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Sampling Distributions and the Central Limit Theorem

A new sample produces a new mean, but those means do not vary without structure.

A hospital wants to estimate average patient waiting time. Instead of measuring every patient, it samples 50 patients and calculates a mean.

SamplePatientsMean wait
15014.2 min
25016.1 min
35015.4 min

A different sample gives a different mean. The key question is how those means vary across repeated samples.

Key question

What pattern appears when sample means are calculated again and again?

1

Concept

A distribution of statistics

A sampling distribution is a distribution of statistics

Draw many samples of the same size from the same population and calculate the mean each time. The resulting collection forms the sampling distribution of the mean.

Repeated samples of 50 patients

Sample 1

14.2 min

Sample 2

16.1 min

Sample 3

15.4 min

Sample 4

13.9 min

Sample 5

15.8 min

Sample means cluster around a center

Repeated estimates form a distribution of their own.

This is not the distribution of individual waiting times. It is the distribution of means calculated from repeated samples.

2

Why It Matters

Why does a bell shape appear?

Sample means cluster around the population mean

Some samples produce means above the population mean and others below it, but repeated sample means tend to center on the true population mean.

As sample size grows, the sampling distribution of the mean often becomes approximately normal even when the original data are not perfectly normal. This is the central limit theorem.

Central limit theorem

Larger samples make the distribution of sample means more nearly normal and more tightly concentrated around the population mean.

3

How It Works

What sample size changes

Larger samples make means more stable

Sample sizeSampling distributionInterpretation
n = 5Wide and irregularMeans differ substantially
n = 30Smoother and narrowerMeans are more stable
n = 200Very concentratedMeans stay close to the population mean

The spread of the individual observations does not disappear. What shrinks is the variation of the sample mean.

4

Example

When does the CLT help?

There is no universal n = 30 rule

Symmetric data without severe outliers may behave well with smaller samples. Strongly skewed outcomes such as income, medical cost, or transaction value may require larger samples.

Two different distributions

Data distribution: waiting times for individual patients

Sampling distribution: average waiting times from repeated samples

5

Interactive

Draw repeated samples

Draw repeated samples

Change the sample size to 5, 30, or 100 and watch the histogram of sample means.

The underlying data is a heavily right-skewed session length. 1,200 samples are drawn from it, and one statistic is computed each time.

Centre

4.00

Standard error

0.734

Skewness

0.47

At n = 30 the sampling distribution of the mean is far less skewed than the raw data (skewness 0.47). This is the textbook case the central limit theorem covers, and raising n brings it closer to normal still.

Every statistic has a sampling distribution. Not every sampling distribution is normal.

  • How does the histogram change as n grows?
  • What happens when the population is skewed?
  • Where is the center of the sampling distribution?

Key takeaways

  • A sampling distribution is built from repeated values of a statistic.
  • Sample means center on the population mean.
  • Larger samples produce a narrower sampling distribution.
  • The central limit theorem explains why sample means often become approximately normal.

Sampling distributions make it possible to quantify uncertainty from a single observed sample.

Go Deeper

Standard Error (SE)