Central Limit Theorem

Install and import#

bash

npm install fintech-algorithms

import { centralLimitTheorem } from "fintech-algorithms/financial-mathematics-statistics-and-data-foundations/sampling-estimation-and-statistical-inference/central-limit-theorem";

Signature#

centralLimitTheorem(input)

Worked example#

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input#

input

{
  "sample": [2, 3, 4, 3, 4],
  "estimates": [3, 3.1, 3.2, 3.3, 3.4],
  "populationMean": 3.2,
  "alpha": 0.05,
  "mseBenchmark": 0.1,
  "nullMean": 3,
  "alternativeMean": 3.5,
  "practicalThreshold": 0.1,
  "comparisons": 5
}

Call#

centralLimitTheorem(input)

Returns#

object with 2 fields: standardizedMeans, center

{
  "standardizedMeans": [
    -1.2649110640673535,
    -0.6324555320336768,
    0,
    0.6324555320336739,
    1.2649110640673507
  ],
  "center": -1.1546319456101628e-15
}