Scientific Foundation
What is probability, statistics & central limit theorem?
Probability and Statistics provide the mathematical foundation for reasoning under uncertainty. The Central Limit Theorem (CLT) states that as sample size n increases (typically n ≥ 30), the sampling distribution of the sample mean (x̄) approaches a Gaussian Normal Distribution regardless of the underlying population's shape. In bivariate regression, Ordinary Least Squares (OLS) minimizes the sum of squared vertical residuals (errors) between observed points and the fitted trendline.
