Determining the central limit theorem


In a chemical process the amount of a certain type of impurity in the output is difficult to control and is thus a random variable. Speculation is that the population means amount of the impurity is 0.20 grams per gram of output. It is known that the standard deviation is 0.1 grams per gram. An experiment is conducted to gain more insight regarding the speculation that p = 0.2. The process was run on a lab scale 50 times and the sample average x turned out to be 0.23 grams per gram. Comment on the speculation that the mean amount of impurity is 0.20 grams per gram. Make use of the central limit theorem in your work.

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Finance Basics: Determining the central limit theorem
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