In today's world, Slutsky's theorem has become a topic of utmost importance and relevance. Whether in the personal, professional, political or social sphere, Slutsky's theorem has gained great relevance and has generated a wide debate among experts and society in general. The importance of Slutsky's theorem lies in its direct impact on different aspects of daily life, as well as its influence on the development and evolution of different areas of knowledge and culture. This is why it is essential to analyze and understand in depth the importance and impact that Slutsky's theorem has on our current reality, as well as to anticipate possible future scenarios that may arise as a result of its presence in various areas.
In probability theory, Slutsky's theorem extends some properties of algebraic operations on convergent sequences of real numbers to sequences of random variables.
The theorem was named after Eugen Slutsky. Slutsky's theorem is also attributed to Harald Cramér.
Let be sequences of scalar/vector/matrix random elements. If converges in distribution to a random element and converges in probability to a constant , then
where denotes convergence in distribution.
Notes:
This theorem follows from the fact that if Xn converges in distribution to X and Yn converges in probability to a constant c, then the joint vector (Xn, Yn) converges in distribution to (X, c) (see here).
Next we apply the continuous mapping theorem, recognizing the functions g(x,y) = x + y, g(x,y) = xy, and g(x,y) = x y−1 are continuous (for the last function to be continuous, y has to be invertible).