Statistics and Probability 2nd sem, SY 2021-2022

LAS 4: Sampling Distributions and the Central Limit Theorem

Learning Activity Sheet 4 Gil S. Dael

LEARNING COMPETENCY
1. identifies sampling distributions of statistics (sample mean). (M11/12SP-IIId-4)
2. finds the mean and variance of the sampling distribution of the sample mean. (M11/12SP-IIId-5)
3. defines the sampling distribution of the sample mean for normal population when the variance is: (a)
known; (b) unknown (M11/12SP-IIIe-1)
4. illustrates the Central Limit Theorem. (M11/12SP-IIIe-2)
5. defines the sampling distribution of the sample mean using the Central Limit Theorem. (M11/12SP-
III-3)
6. solves problems involving sampling distributions of the sample mean. (M11SP-IIIe-f-1)

4.1 Sampling Distributions

Let us recall some of the statistics and parameters that are commonly used.
Measure Statistic Parameter
Mean x (x bar) µ (mu)
Variance s2 σ 2 (sigma squared)
Standard deviation s σ (sigma)
Proportion pb (p hat) p
Definition 4.1 A sampling distribution is the probability distribution of a sample statistic that is formed
when samples of size n are repeatedly taken from a population. If the sample statistic is the sample mean,
then the distribution is the sampling distribution of sample means. Every sample statistic has a sampling
distribution.
Properties of Sampling Distributions of Sample Means
1. The mean of the sample means µx̄ is equal to the population mean µ.
2. The standard deviation of the sample mean σx̄ is equal to the population standard deviation σ divided
by the square root of the sample size n.
σ
σx̄ = √
n
The standard deviation of the sampling distribution of the sample means is called the standard error
of the mean.
Example 4.2 You write the population values {1, 2, 3} on slips of paper and put them in a box.Then you
randomly choose two slips of paper, with replacement.
1. From the population {1, 2, 3}, the following are possible samples of size 2:
Sample 1: {1, 1}
Sampe 2: {1, 2}

4-1
4-2 Lecture 4: Sampling Distributions and the Central Limit Theorem

Sample 3: {1, 3}
Sample 4: {2, 1}
Sampe 5: {2, 2}
Sample 6: {2, 3}
Sample 7: {3, 1}
Sampe 8: {3, 2}
Sample 9: {3, 3}

There are 9 possible samples of size 2 from a population of size 3.

Since there are 9 samples, there are also 9 sample means out of this distribution, namely,
Sample Sample Mean, x
{1, 1} (1 + 1)/2 = 1
{1, 2} (1 + 2)/2 = 1.5
{1, 3} (1 + 3)/2 = 2
{2, 1} (2 + 1)/2 = 1.5
{2, 2} (2 + 2)/2 = 2
{2, 3} (2 + 3)/2 = 2.5
{3, 1} (3 + 1)/2 = 2
{3, 2} (3 + 2)/2 = 2.5
{3, 3} (3 + 3)/2 = 3
In summary, we have
a. One sample has a mean of 1.
b. Two samples have a mean of 1.5
c. Three samples have a mean of 2.
d. Two samples have mean of 2.5.
e. One sample has a mean of 3.
From the summary, we see that
a. the probability of mean equal to 1 is 1/9.
b. the probability of mean equal to 1.5 is 2/9.
c. the probability of mean equal to 2.0 is 3/9.
d. the probability of mean equal to 2.5 is 2/9.
e. the probability of mean equal to 3 is 1/9.

Therefore, the sampling distribution of the means from the population of measures 1,2, and 3 and of
size two each is
Sample mean 1.0 1.5 2.0 2.5 3.0
Probability 1/9 2/9 3/9 2/9 1/9

4.1.1 Mean, Variance, and Standard Deviation

The following are the formulas for computing the mean, variance and standard deviation.
x1 + x2 + · · · + xn
Mean:
n
(x1 − µ)2 + (x2 − µ)2 + · · · + (xn − µ)2
Variance: , and
n
Lecture 4: Sampling Distributions and the Central Limit Theorem 4-3

√
Standard deviation: variance (square root of the variance)
where
x1 , x2 , . . . , xn are random variable values and µ is the mean of the measures.
Example 4.3 Find the mean, variance, and standard deviation of the following measures: 2, 5, 6, 3, 9, 10,
12, and 15.
Solution: Here we take x1 = 2, x2 = 5, x3 = 6, x4 = 3, x5 = 9, x6 = 10, x7 = 12, x8 = 15. Hence, n = 8.
x1 + x2 + · · · + xn 2 + 5 + 6 + 3 + 9 + 10 + 12 + 15
a. Mean = = = 7.75
n 8
b.
(x1 − µ)2 + (x2 − µ)2 + · · · + (xn − µ)2
Variance =
n
(2 − 7.75)2 + (5 − 5.75)2 + (6 − 7.75)2 + (3 − 7.75)2 + (9 − 7.75)2 +
(10 − 7.75)2 + (12 − 7.75)2 + (15 − 7.75)2
=
8
33.06 + 7.56 + 3.06 + 22.56 + 1.56 + 5.06 + 18.06 + 52.56
=
8
143.50
=
8
= 17.94

√
c. Standard Deviation = 17.94 = 4.24

4.1.2 Mean, Variance, and Standard Deviation of a Sampling Distribution of

the Sample Means

The mean, variance, and standard deviation of the sampling distribution of the sample means are denoted
by the following symbols:
Mean of the sample means, µx
Variance of the sample means, σx2
Standard Deviation of the sample means, σx
The formulas to be used in computing for µx , σx2 , and σx are the ones used in Section 4.1.1 except that
the data will now come from the sampling distribution of the means, particularly, the means of the samples.
Example 4.4 Given a finite population of 3 elements , namely 1, 2, and 3. Suppose all possible samples of
size 2 are drawn from the population, compute for the following:
1. mean of the sample means
2. variance of the sample means
3. standard deviation of the sample means
Solution:
i. The population in consideration has measures: 1,2,3.
ii. All the possible samples of size 2 are as follows:
4-4 Lecture 4: Sampling Distributions and the Central Limit Theorem

{1, 1}, {1, 2}, {1, 3}, {2, 1}, {2, 2}, {2, 3}, {3, 1}, {3, 2}, {3, 3}
iii. From these 9 samples, we have the following 9 sample means:
{1, 1.5,1.5,2.0,2.0,2.5, 2.5, 3.0}
iv. The mean of the sample means is:
1 + 1.5 + 1.5 + 2.0 + 2.0 + 2.0 + 2.5 + 2.5 + 3.0
µx =
9
18
=
9
=2

v. The varianace of the sample means is:

(1 − 2)2 + (1.5 − 2)2 + (1.5 − 2)2 + (2 − 2)2 + (2 − 2)2 +

(2 − 2)2 + (2.5 − 2)2 + (2.5 − 2)2 + (3 − 2)2
σx2 =
9
(−1)2 + (−0.5)2 + (−0.5)2 + (0)2 + (0)2 + (0)2 + (0.5)2 + (0.5)2 + (1)2
=
9
3
=
9
= 0.3333

vi. The standard deviation of the sample means is:

√
σx = 0.33333
= 0.57735

The standard deviation of the sample means is:

v
u (1 − 2)2 + (1.5 − 2)2 + (1.5 − 2)2 + (2 − 2)2 + (2 − 2)2 +
u
√ t (2 − 2)2 + (2.5 − 2)2 + (2.5 − 2)2 + (3 − 2)2
Variance =
9
r
(−1) + (−0.5) + (−0.5) + (0)2 + (0)2 + (0)2 + (0.5)2 + (0.5)2 + (1)2
2 2 2
=
9
r
3
=
9
= 0.577

4.2 The Central Limit Theorem

The Central Limit Theorem forms the foundation for the inferential branch of statistics. This theorem
describes the relationship between the sampling distribution of sample means and the population that the
samples are taken from. The Central Limit Theorem is stated below.
Definition 4.5 1. If samples of size n, where n ≤ 30, are drawn from any population with a mean µ
and a standard deviation σ, then the sampling distribution of sample means approximates a normal
distribution. The greater the sample size, the better the approximation.
Lecture 4: Sampling Distributions and the Central Limit Theorem 4-5

2. If the population itself is normally distributed, then the sampling distribution of sample means is
normally distributed for any sample size n. In either case, the sampling distribution of sample means
has a mean equal to the population mean.
µx = µ (Mean)
The sampling distribution of sample means has a variance equal to 1/n times the variance of the
population and a standard deviation equal to the population standard deviation by the square root of
n.
σ2
σx2 = (Variance)
n
σ
σx = √ (Standard Deviation)
n
Example 4.6 Verify the Central Limit Theorem on the population of size 3 with measures: 1, 2, 3. Consider
Example 4.4.
Solution: The population must have a mean µ and variance σ 2 . Hence,
i. Population mean:

1+2+3
µ=
3
6
=
3
=2

ii. Population variance:

(1 − 2)2 + (2 − 2)2 + (3 − 2)2

σ2 =
3
(−1)2 + (0)2 + (1)2
=
3
1+0+1
=
3
1+0+1
=
3
2
=
3

iii. Sampling distribution of the means of samples of size 2:

[a.] All possible samples:
{1, 1}, {1, 2}, {1, 3}, {2, 1}, {2, 2}, {2, 3}, {3, 1}, {3, 2}, {3, 3}
[b.] All possible sample means:
1, 1.5, 1.5, 2.0, 2.0, 2.0, 2.5, 2.5, 3.0
Sampling Distribution of the Means
Sample mean 1.0 1.5 2.0 2.5 3.0
Probability 1/9 2/9 3/9 2/9 1/9
4-6 Lecture 4: Sampling Distributions and the Central Limit Theorem

iv. Mean of the sample means:

1.0 + 1.5 + 1.5 + 2.0 + 2.0 + 2.0 + 2.5 + 2.5 + 3.0

µx =
9
18
=
9
=2

v. Standard deviation of the means:

(1 − 2)2 + (1.5 − 2)2 + (1.5 − 2)2 + (2 − 2)2 + (2 − 2)2 + (2 − 2)2 + (2.5 − 2)2 + (2.5 − 2)2 + (3 − 2)2
σx =
r 9
(−1)2 + (−0.5)2 + (−0.5)2 + (0)2 + (0)2 + (0)2 + (0.5)2 + (0.5)2 + (1)2
=
9
r
1 + 0.25 + 0.25 + 0 + 0 + 0 + 0.25 + 0.25 + 1
=
9
r
3
=
9
= 0.577

σ
v. Standard deviation of the population divided by teh square root of the sample size: √
2
q
Standard deviation of the populatin, σ = 23

Sample size = 2

Thus, the standard deviation of the sample means, is

q
2
σ 3
√ = √
2 2
r
2
=
6
= 0.577

Thus, we have satisfied the following equalities as stated in the Central Limit Theorem.

µx = µ

σ2
σx2 =
n
σ
σx = √
n

vii. Bar graph of the sampling distribution

Lecture 4: Sampling Distributions and the Central Limit Theorem 4-7

Remarks:
1. Note that the bar graph of the sampling distribution is approximately normal.
2. The standard deviation of the means is commnonly called the standard error of the mean.
Example 4.7 A consumer price analyst claims that prices for liquid crystal display (LCD) computer mon-
itors are normally distributed, with a mean of P9,500 and a standard deviation of P2,400.
1. What is the probability that a randomly selected LCD computer monitor costs less than P10,000?
2. You randomly select 10 LCD computer monitors. What is the probability that their mean cost
is less than P10,000?
3. Compare these two probabilities.
Solution: 1. To find probabilities for individual members of a population with a normally distributed
random variable x, use the formula
x−µ
z= .
σ
Thus, the z-score that corresponds to x = 10, 000 is
10, 000 − 9, 500
z= ≈ 0.21.
2, 400

So, the probability that a randomly selected LCD computer monitor costs less than P10,000 is

P (x < 10, 000) = P (z < 0.21) = 0.5832.

2. To find probabilities for mean x of a sample of size n, use the formula:

x − µx
z= .
σx
σ
By the Central Limit Theorem, since the population is normally distributed, then µx = µ and σx = √ .
n
Thus,
x − µx x−µ
z= = σ .
σx √
n
Thus, in the problem, we get,
x − µx x−µ 10, 000 − 9, 000 500
z= = σ = = ≈ 0.66.
σx √ 2, 400 758.9466384
√
n 10
4-8 Lecture 4: Sampling Distributions and the Central Limit Theorem

So, the probability that the mean price of 10 LCD computer monitor is less than 10,000 is

P (x < 10, 000) = P (z < 0.66) = 0.7454.

3. There is about 58% chance that an LCD computer monitor will cost less than P10,000. There is about
75% chance that the mean cost of a sample of 10 LCD computer monitors is less than P10,000.

4.2.1 Problem Set 4.1

Name: Section: Contact No. & FB account: Date: Submitted:

General Directions. As much as possible, show complete solution for full credit. Indicate your
solutions and answers on a piece of short bond paper.
1. A population consists of the numbers 1, 3, 5.
a. Enumerate all possible samples of size 2.
b. Compute for the mean of each sample.
c. Find the mean of the means.
d. Find the standard deviation of the sample means.
e. Find the population mean.
f. Find the population standard deviation.
g. Find the standard error of the mean.
2. During a certain week the mean price of gasoline in a certain place was P62.60 per liter. A random
sample of 38 gas stations is drawn from this population.What is the probability that the mean price for the
sample was between P65.00 and P67.00 that week? Assume σ = P 2.50.

4.2.2 References
Larson, R. & Farber, B. (2012). Elementary statistics: picturing the world. Pearson Education, Inc.
Malate, J. S. (2018). Statistics & probability for senior high school. Vicarish Publications and Trading, Inc.
Mamhot, M. & Mamhot A. (2016). Statistics and probability. Unlimited Books Library Services & Publishing,
Inc.
Triola, M. F. (11th ed.). Elementary statiscs. Addison-Wesley.
Williams, T. A., Sweeney, D. J., & Anderson, D. R. (2010). Modern business statistics. Cengage Learning.