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Distribution of The Sample Proportion Week 09 - Part 1

The sample proportion p is a transformation of a binomial random variable X with n trials. The expected value of p is the population proportion π. The expected variance of p is π(1-π)/n. If n*π > 5 and n*(1-π) > 5, then the binomial is sufficiently symmetric and p will be normally distributed with mean π and variance π(1-π)/n. This allows us to determine probabilities about the sample proportion p.

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20 views8 pages

Distribution of The Sample Proportion Week 09 - Part 1

The sample proportion p is a transformation of a binomial random variable X with n trials. The expected value of p is the population proportion π. The expected variance of p is π(1-π)/n. If n*π > 5 and n*(1-π) > 5, then the binomial is sufficiently symmetric and p will be normally distributed with mean π and variance π(1-π)/n. This allows us to determine probabilities about the sample proportion p.

Uploaded by

Jane Doe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPSX, PDF, TXT or read online on Scribd
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E370

5/13/17
Distribution of the
sample proportion
Week 09 Part 1
p
is the sample proportion.

when X is a binomial with n trials


and n = the number of trials

p is a transformation of a binomial.
It is the binomial turned into a
continuous variable.
Since the binomial was a random
variable, so is p.

What is a sample proportion?


What is the expected value of p?
Remember, X~B(n, ).

The expected value of p


.
. . and the expected variance of p?
Remember, X~B(n, ).

. . .the expected variance?


Weneed to go back to the
binomial to figure this out. . .
How do we tell if a binomial is
sufficiently symmetric to do
others things?
IF n* > 5 AND n*(1-) > 5, the
binomial is sufficiently symmetric.
What do we want to do? Decide how
the distribution of the sample
proportion is shaped.
If the original binomial is
sufficiently symmetric, then p is
What about the shape?
normally distributed.
IF n* > 5 AND n*(1-) > 5,

Its utility distribution is the Standard
Normal.
Why bother with the proportion?
It is the binomial transformed;
different but unchanged.
It makes a discrete distribution into a
continuous one.
We are able to invert continuous
variables, which we cant do with
discrete binomials.
Bottom line . . .
Arecent Gallup poll talked with
500 adult Americans and reported
that 20% of them said they believe
in reincarnation. Describe the
distribution of the sample
proportion for samples of this size.

Test:

An example of its use


What is the probability that in a
random sample of 500 adult
Americans, more than 22% believe in
reincarnation?

=1-
NORM.DIST(0.22, 0.20, 0.0179,
1)=0.1319
Example continued . . .

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