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Esiphala Demo Institute
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In the previous section hypotheses testing for population means was described in the case of large samples. The statistical validity of the tests was insured by the Central Limit Theorem, with essentially no assumptions on the distribution of the population. When sample sizes are small, as is often the case in practice, the Central Limit Theorem does not apply. One must then impose stricter assumptions on the population to give statistical validity to the test procedure. One common assumption is that the population from which the sample is taken has a normal probability distribution to begin with. Under such circumstances, if the population standard deviation is known, then the test statistic