Chapter 7

Sampling
and
Sampling
Distributions
 Chapter 7: Learning Objectives

✓ be able to draw a simple random sample using

Excel
✓ understand the difference between a population
parameter, point estimator and point estimate
✓ be able to calculate the point estimators for
,  and p
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and
sample proportion
✓ understand the concept of a sampling distribution
✓ know the central limit theorem
✓ know the characteristics of the sampling distribution
of the sample mean and the sampling distribution of
the sample proportion 2
 Sampling and Sampling distributions

Is built on a
foundation of

is built on a
foundation of
 Sampling methods

• YouTube Video
https://www.youtube.com/watch?v=be9e-Q-
jC-0
 Simple Random Sampling

A Simple Random Sampling is obtained if each element of

the population that has not yet been included in the sample
stands an equal chance of being selected in the next draw

Example:
➢ Draw numbers from a hat.
➢ Use RANDOM function on calculator.
➢ Use =RAND() function in Excel.
➢ Returns an evenly distributed random
real number greater than or equal to 0
and less than 1. A new random real
number is returned every time the
worksheet is calculated

➢ Look out for another creative alternative in

Section 5.4 of your Practical Guide for
2020
 Simple Random Sampling in EXCEL

Exercise
Draw a random sample from a population of elements using
Excel

Method:
1. Assign a random number to each of the population elements.
➢ Use the Excel function =RAND() to assign a random
number between 0 and 1.
2. Select the 𝑛 elements with the smallest random numbers by
using the sort function in EXCEL.

Remark (to ensure that the random numbers obtained do not change
after the first sort):
Turn off the automatic recalculation option prior to sorting:
Formulas Calculation Options Manual
 Simple Random Sampling (SRS): Example
Draw a SRS of size 10 from the population of 200 students.
• The Excel function =RAND() assigns a random number between
0 and 1 to each of the 200 population elements
• Select the 10 students with the smallest random numbers by
using the sort function in EXCEL
You may assume the population of students are numbered as shown
below.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99100
101102103104105106107108109110111112113114115116117118119120
121122123124125126127128129130131132133134135136137138139140
141142143144145146147148149150151152153154155156157158159160
161162163164165166167168169170171172173174175176177178179180
181182183184185186187188189190191192193194195196197198199200
Excel: Simple Random Sample
 Simple Random Sampling: Example

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100
101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120
121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140
141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160
161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180
181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200
 Random sampling methods

Systematic random sampling methods

10
 Random sampling methods
Stratified random sampling Cluster sampling

11
 Chapter 7: Learning Objectives

✓ be able to draw a simple random sample using

Excel ✓
✓ understand the difference between a population
parameter, point estimator and point estimate
✓ be able to calculate the point estimators for
,  and p
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and
sample proportion
✓ understand the concept of a sampling distribution
✓ know the central limit theorem
✓ know the characteristics of the sampling distribution
of the sample mean and the sampling distribution of
the sample proportion 12
 Chapter 7: Learning Objectives

✓ understand the difference between a population

parameter, point estimator and point estimate
✓ be able to calculate the point estimators for ,  and
p
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and
sample proportion
✓ understand the concept of a sampling distribution

✓ know the central limit theorem

✓ know the characteristics of the sampling

distribution of the sample mean
✓ know the characteristics of the sampling distribution
of the sample proportion
 A Parameter

According to the Census 2011

data from Statistics South
Africa, the average age is 25
years.

It is taking into account ALL the

people in SA … it is a FIXED
value.

It is called a PARAMETER

Symbol is µ

14
 A Point estimate

What is the average age of a

South African in 2019?
We take a
representative sample
We find the average age
is 22.6 years

This is a point estimate

of the overall average
age
It is called a sample statistic
Symbol is ഥ
𝒙
It is a variable
15
 Point Estimation

A point estimate is a single numerical value that is used to estimate an

unknown population parameter
Example:
Population of exam marks
Sample of 30 using RAND()

300 30
55.53%
55.71%

55.53 =AVERAGE(A1:A30) = POINT estimate of

55.71 =AVERAGE(A1:A300)
 Point Estimation
Population Sample statistic
parameter (Point Estimator)
Sampling error *
𝑥ҧ − 𝜇
σ 𝑥𝑖 σ 𝑥𝑖
Mean 𝜇= 𝑥= OR
𝑁 𝑛
𝜇−𝑥
2 𝑠2 − 𝜎 2
σ 𝑥𝑖 −𝜇 2 σ 𝑥𝑖 − 𝑥
Variance 𝜎2 = 𝑠2 = OR
𝑁 𝑛−1 𝜎 2 − 𝑠2

Standard 𝑠−𝜎
𝜎 = 𝜎2 𝑠 = 𝑠2 OR
deviation 𝜎−𝑠
𝑝−𝑝
𝑥
Proportion 𝑝 𝑝= OR
𝑛
𝑝−𝑝

Make a note of the following absolute relationships (will be in formula list)

* |x| = x if x is positive 𝑥 ≥ 𝑎: 𝑥 ≥ 𝑎 or 𝑥 ≤ −𝑎
= -x if x is negative 𝑥 ≤ 𝑎: −𝑎 ≤ 𝑥 ≤ 𝑎
e.g. |-3| = 3 17
Point Estimation: an example
 ഥ: Example using Excel
The Sampling Distribution of 𝒙
Salary of managers: 𝜇 = 51 800 and 𝜎 = 4 000 n = 100.
Question:
Calculate the probability that the salary of a randomly chosen
manager will be within $500 from the population average
𝑃(51 300 < 𝑥 < 52 300)
= NORMDIST (52300,51800,4000,TRUE) -NORMDIST (51300,51800,4000,TRUE)

= 0.0995

Question:
Calculate the probability that the average salary will be within
$500 from the population average for a sample of size 100.

𝑃(51 300 < 𝑥 < 52 300)

4000
= NORMDIST (52300,51800, ,TRUE) - NORMDIST (51300,51800, 4000,TRUE)
100 100
= 0.7887
Note the important differences highlighted in YELLOW
 Introduction to Sampling Distributions

0.9 1.5 1.8 2.2 2.5

average
0.9 1.5 1.2
0.9 1.8 1.35
0.9 2.2 1.55
0.9 2.5 1.7
1.5 1.8 1.65
1.5 2.2 1.85
1.5 2.5 2
1.8 2.2 2
Population average: µ = 1.78 kg 1.8 2.5 2.15
2.2 2.5 2.35

A very small population is used to illustrate the principle of “all possible samples”
 Introduction to Sampling Distributions

Population average: µ = 1.78 kg

0.9 1.5 1.8 2.2 2.5
average
If all samples of size n are
1.2 drawn from a population and the
1.35 average is calculated for each
1.55 sample, all the values have a
1.7 certain distribution known as the
1.65 sampling distribution of the
1.85 mean.
2
1
2 𝐸 𝑦ത = 𝜇𝑦ത = σ 𝑦ത𝑖 =1.78
𝑛
2.15
2.35

𝑦ത
 Sampling Distributions

n=2 n=3 0.9 1.5 1.8 1.4

0.9 1.5 1.2
0.9 1.5 2.2 1.533
0.9 1.8 1.35
0.9 1.5 2.5 1.633
0.9 2.2 1.55
0.9 2.5 0.9 1.8 2.2 1.633
1.7
1.5 1.8 1.65 0.9 1.8 2.5 1.733
1.5 2.2 1.85 0.9 2.2 2.5 1.867
1.5 2.5 2 1.5 1.8 2.2 1.833
1.8 2.2 2 1.5 1.8 2.5 1.933
1.8 2.5 2.15 1.5 2.2 2.5 2.067
2.2 2.5 2.35 1.8 2.2 2.5 2.167
1.78 0.34 1.78
n=4 0.9 1.5 1.8 2.2
0.23
1.6
0.9 1.5 1.8 2.5 1.675
0.9 1.8 2.2 2.5 1.85
1.5 1.8 2.2 2.5 2
0.9 1.5 2.2 2.5 1.775
0.14
1.78
 Introduction to Sampling Distributions

Sample average can take on different values, in other words it is a variable

with a distribution. Question: What does this distribution look like?
 Central Limit theorem

• https://www.youtube.com/watch?v=kd6ElHgAgfY
• Excel – Central Limit Theorem clearly visualized
 ഥ
The Sampling Distribution of 𝒙

𝜎 𝑥ҧ
Type equation here.

𝜇 𝜎
𝑛
𝜇
𝑥ҧ
𝑥ҧ
 The Central Limit Theorem

n=5 n = 15

n = 50
n = 30
 The Central Limit Theorem

n=5 n = 15

n = 50
n = 30
 ഥ
The Sampling Distribution of 𝒙
Let 𝑥ҧ be the sample average of a random sample of size n from
any population.

Then: The sampling distribution of 𝑥ҧ has an approximate Normal

distribution for n large (𝒏≥𝟑𝟎).
The expected value of 𝐱:
𝐸 𝑥 =𝜇
The sample average (𝑥) is an unbiased estimator (of 𝜇) since 𝐸 𝑥 = 𝜇
ഥ
The standard deviation of 𝒙
Finite population: Infinite population:
𝜎
𝑁−𝑛 𝜎 𝜎𝑥 = (B)
𝜎𝑥 = (A) 𝑛
𝑁−1 𝑛

𝜎𝑥 is also known as the standard error of the mean.

Note: For N large and n small, then 𝑁 − 𝑛 ≈ 1 and we use the formula (B).
𝑁−1
𝑛
If 𝑁
≤0.05 we use formula (B).
 Chapter 7: Learning Objectives

✓ understand the difference between a population

parameter, point estimator and point estimate ✓
✓ be able to calculate the point estimators for ,  and
p ✓
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and
sample proportion
✓
✓ understand the concept of a sampling distribution
✓
✓ know the central limit theorem
✓
✓ know the characteristics of the sampling
distribution of the sample mean
✓ know the characteristics of the sampling distribution
of the sample proportion
 Chapter 7: Learning Objectives

✓ understand the difference between a population

parameter, point estimator and point estimate
✓ be able to calculate the point estimators for ,  and p
✓
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and sample
proportion
✓
✓ understand the concept of a sampling distribution ✓✓
✓ know the central limit theorem
✓
✓ know the characteristics of the sampling distribution
of the sample mean if population is normal
✓ know the characteristics of the sampling distribution
of the sample mean if population is uniform
✓ know the characteristics of the sampling distribution of
the sample proportion
 Pre-class Assignment 7 - CLT
Ex 25 p.344
The population mean preparation
fee that H&R Block charged retail
customers in 2012 was $183. Assume the population
standard deviation of preparation fees is $50.

a. What is the probability that a randomly selected preparation

price of H&R Block retail customers is within $8 of the
population mean?
b. What is the probability that the mean price for a sample of 10
H&R Block retail customers is within $8 of the population
mean?
c. What is the probability that the sampling error is less than $8?
d. What is the probability that the sampling error is more than
$8?
 Pre-class Assignment 7 - CLT
Ex 25 p.344
The population mean preparation fee that H&R Block charged retail customers
in 2012 was $183. Assume the population standard deviation of preparation
fees is $50.
a. What is the probability that a randomly selected preparation price of
H&R Block retail customers is within $8 of the population mean?
−8 8
𝑃 −8 < 𝑥 − 𝜇 < 8 = 𝑃 <𝑍<
50 50
= P −0.16 < Z < 0.16 = 0.5636 − 0.4364 = 0.1272
b. What is the probability that the mean price for a
sample of 10 H&R Block retail customers is within $8
of the population mean?
−8 8
𝑃 −8 < 𝑥ҧ − 𝜇 < 8 = 𝑃 50 <𝑧< 50 = P −0.51 < z < 0.51
10 10
= 0.6950 − 0.3050 = 0.39
c. What is the probability that the sampling error is
less than $8? (n=10)
𝑃 𝑥ҧ − 𝜇 < 8 = 𝑃 −8 < 𝑥ҧ − 𝜇 < 8 𝑠𝑎𝑚𝑒 𝑎𝑠 𝑏.
d. What is the probability that the sampling error is more than $8? (n=10)
−8 +8
𝑃 𝑥ҧ − 𝜇 > 8 = 𝑃 𝑥ҧ − 𝜇 < −8 + 𝑃 𝑥ҧ − 𝜇 > 8 = 𝑃 𝑧 < 50 +𝑃 𝑧 > 50
10 10
= 𝑃 𝑧 < −0.51 + 𝑃 𝑧 > 0.51 = 0.3050 + (1 − 0.6950) = 0.61
 ഥ: Example
The Sampling Distribution of 𝒙
Salary of managers: 𝜇 = 51 800 and 𝜎 = 4 000.
Question:
Calculate the probability that the average salary will be within
$500 from the population average for a sample of size 100.

Answer:
𝜎 4 000
𝐸 𝑥 = 𝜇 = 51 800 𝜎𝑥 = = = 400
𝑛 100

First we standardize the 𝑥 values:

𝑥−𝜇 51 300−51 800 𝑥−𝜇 52 300−51 800

𝑧= = = −1.25 and 𝑧 = = = 1.25
𝜎𝑥 400 𝜎𝑥 400

Therefore,

𝑃(51 300 < 𝑥 < 52 300)

= 𝑃 −1.25 < 𝑧 < 1.25
= 𝑃 𝑧 < 1.25 − 𝑃 𝑧 < −1.25
= 0.8944 − 0.1056
= 0.7888
 ഥ
The Sampling Distribution of 𝒙

𝜎 𝑥ҧ
Type equation here.

𝜇 𝜎
𝑛
𝜇
𝑥ҧ
𝑥ҧ
 Chapter 7: Learning Objectives

✓ understand the difference between a population

parameter, point estimator and point estimate
✓ be able to calculate the point estimators for ,  and p
✓
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and sample
proportion
✓
✓ understand the concept of a sampling distribution ✓✓
✓ know the central limit theorem
✓
✓ know the characteristics of the sampling distribution
of the sample mean if population is normal ✓
✓ know the characteristics of the sampling distribution
of the sample mean if population is uniform
✓ know the characteristics of the sampling distribution of
the sample proportion
 The Central Limit Theorem

n=5 n = 15

n = 50
n = 30
 ഥ for the uniform distribution
The Sampling Distribution of 𝒙

𝑏−𝑎 2
𝜎=
12
n ≥ 30
Type equation here.
𝜎
𝑛
𝑎+𝑏
𝜇=
2 𝜇
 Example for Central Limit Theorem
Suppose that the delivery time of pizzas has a
uniform distribution over the interval from 20 to 40
minutes.

Let 𝑥 = the delivery time in minutes.

The probability function of 𝑥 is:

1 1
𝑓 𝑥 = ቐ40 − 20 20 = 0.05
= for 20 ≤ 𝑥 ≤ 40
0 elsewhere

𝑎 + 𝑏 20 + 40
The average delivery time of a pizza is 𝐸 𝑥 =𝜇= = = 30
2 2

𝑏−𝑎 2
2
40 − 20 2
The standard deviation of x is: 𝑉𝑎𝑟 𝑥 = 𝜎 = =
12 12
= 33. 3ሶ
𝑆𝑡𝑑𝑒𝑣 𝑥 = 𝜎 = 33. 3ሶ = 5.7735
 Example for Central Limit Theorem
Suppose that the delivery time of pizzas has a
uniform distribution over the interval from 20 to 40
minutes. Mean = 30 and standard deviation = 5.7735

Let 𝑥 = the delivery time in minutes.

The probability that it will take between 28
and 32 minutes to deliver a pizza is:
𝑃 28 < 𝑥 < 32 = ∆𝑥 ∙ 𝑓 𝑥
= 32 − 28 0.05 = 0.2

Let 𝑥 = the average delivery time of 36 pizzas

What is the sampling distribution of 𝑥?
It is normally distributed with
𝐸 𝑥 = 𝜇 = 30

𝜎 5.7735
𝜎𝑥 = = = 0.962
𝑛 36
 Example for Central Limit Theorem
Suppose that the delivery time of pizzas has a
uniform distribution over the interval from 20 to 40
minutes. Mean = 30 and standard deviation = 5.773
Let 𝑥 = the average delivery time of 36 pizzas

What is The probability that 𝑥 is between 28 and 32 minutes?

𝑃(28 < 𝑥 < 32)

𝑥−𝜇 28−30
First we standardize the 𝑥 values: 𝑧 = 𝜎𝑥
= 0.962
= −2.078 ≈ −2.08 and
𝑥−𝜇 32−30
𝑧= = = 2.078 ≈ 2.08
𝜎𝑥 0.962
𝑃(28 < 𝑥 < 32)
= 𝑃 −2.08 < 𝑧 < 2.08
= 𝑃 𝑧 < 2.08 − 𝑃 𝑧 < −2.08 = NORMSDIST(2.08) – NORMSDIST(-2.08)
= 0.9812 − 0.0188
= 0.9624 , OR
𝑃 28 < 𝑥 < 32 = 𝑃 𝑥 < 32 − 𝑃 𝑥 < 28
= NORMDIST(32, 30, 0.962, TRUE) – NORMDIST(28, 30, 0.962, TRUE)
= 0.9623
 Sampling Distributions: Example
Given:
𝑥 is normally distributed with 𝜇 = 60 and 𝜎 = 10.
𝑃 𝑎1 < 𝑥 < 𝑎2 = 0.95 and 𝑛 = 100.

Question:
What are the values of 𝑎1 and 𝑎2 ? Note that
the area of 0.95 represents the middle 95% of
the data

If we know that the area to the left of 𝑎1 is 0.025, we can find the
corresponding 𝑧-value of -1.96.
If we know that the area to the left of 𝑎2 is 0.975, we can find the
corresponding 𝑧-value of 1.96.
 Sampling Distributions: Example
Given: x is normally distributed with 𝜇 = 60 and 𝜎 = 10.
𝑃 𝑎1 < 𝑥 < 𝑎2 = 0.95 and 𝑛 = 100.
the corresponding 𝑧-values are -1.96 and 1.96
Question:
What are the values of 𝑎1 and 𝑎2 ?

𝑎1 − 𝜇 𝑎2 − 𝜇
𝑧= 𝑧=
𝜎𝑥 𝜎𝑥

𝑎1 − 60 𝑎2 − 60
−1.96 = 1.96 =
1 1

𝑎1 = −1.96 1 + 60 𝑎2 = 1.96 1 + 60 = 61.96

= 58.04
 Sampling Distributions: Example
Given: 𝑥 is normally distributed with 𝜇 = 60 and 𝜎 = 10.
𝑃 𝑎1 < 𝑥 < 𝑎2 = 0.95 and 𝑛 = 100.

Question:
What are the values of 𝑎1 and 𝑎2 ?
We know that the area to the left of 𝑎1 is 0.025, therefor
𝑎1 = NORM.INV(0.025, 60, 1) = 58.04
We know that the area to the left of 𝑎2 is 0.975, therefor:
𝑎2 = NORM.INV(0.975, 60, 1) = 61.96

IN GENERAL: =NORM.INV(area to the left, 𝜇, 𝜎𝑥 )

 Absolute value questions:

𝑥 ≥ 𝑎: 𝑥 ≥ 𝑎 or 𝑥 ≤ −𝑎

𝑥 ≤ 𝑎: −𝑎 ≤ 𝑥 ≤ 𝑎

Given 𝜎𝑥 = 25. What is the probability that the sampling

error of 𝑥 is less than 5?
𝑃 𝑥−𝜇 <5
= 𝑃 −5 < 𝑥 − 𝜇 < 5
−5 𝑥−𝜇 5
=𝑃 < <
25 𝜎𝑥 25
= 𝑃 −0.2 < 𝑧 < 0.2
= 𝑃 𝑧 < 0.2 − 𝑃 𝑧 < −0.2
= 0.5793 − 0.4207 = 0.1586.
 Absolute value questions:

𝑥 ≥ 𝑎: 𝑥 ≥ 𝑎 or 𝑥 ≤ −𝑎

𝑥 ≤ 𝑎: −𝑎 ≤ 𝑥 ≤ 𝑎

Given 𝜎𝑥 = 25. What is the probability that the sampling

error of 𝑥 is greater than 10?

𝑃 𝑥 − 𝜇 > 10
= 𝑃 𝑥 − 𝜇 > 10 + 𝑃 𝑥 − 𝜇 < −10
𝑥−𝜇 10 𝑥−𝜇 −10
=𝑃 > +𝑃 <
𝜎𝑥 25 𝜎𝑥 25
= 𝑃(𝑧 > 0.4)+𝑃 𝑧 < −0.4
= 1 − 𝑃 𝑧 < 0.4 + 𝑃 𝑧 < −0.4
= 1 − 0.6554 + 0.3446 = 0.6892.
 Chapter 7: Learning Objectives

✓ understand the difference between a population

parameter, point estimator and point estimate
✓ be able to calculate the point estimators for ,  and p
✓
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and sample
proportion
✓
✓ understand the concept of a sampling distribution ✓✓
✓ know the central limit theorem
✓
✓ know the characteristics of the sampling distribution
of the sample mean if population is normal ✓
✓ know the characteristics of the sampling distribution
of the sample mean if population is uniform ✓
✓ know the characteristics of the sampling distribution of
the sample proportion
 ഥ
Sampling Distributions of 𝒑

The sample proportion 𝑝ҧ is the point estimate of the population proportion p

𝑥
𝑝ҧ =
𝑛
Where 𝑥 = the number of elements in the sample that possess the
characteristic of interest
n = sample size
The sampling distribution of 𝑝ҧ is the probability distribution of all
possible values of the sample proportion 𝑝.ഥ
Expected value of 𝑝:ҧ 𝐸 𝑝 =𝑝
Standard deviation of 𝑝ҧ
Finite population: Infinite population:

𝑁 − 𝑛 𝑝(1 − 𝑝) 𝑝(1 − 𝑝)
𝜎𝑝 = 𝜎𝑝 =
𝑁−1 𝑛 𝑛
𝜎𝑝 is also known as the standard error of the
proportion.
 ഥ
Sampling Distributions of 𝒑
The sample proportion 𝑝ҧ is the point estimate of the population
proportion p
𝑥
𝑝ҧ =
𝑛
where 𝒙 = the number of elements in the sample that
possess the characteristic of interest
𝒏 = sample size

The sampling distribution of 𝑝 has approximately a normal

distributed for “large” samples. A sample is “large” if
𝒏𝒑 ≥ 𝟓
𝒏(𝟏 − 𝒑) ≥ 𝟓
With mean of 𝑝:ҧ 𝝁𝒑ഥ = 𝒑
𝒑(𝟏−𝒑)
Standard deviation of 𝑝ҧ : 𝝈𝒑 =
𝒏
 ഥ
The Sampling Distribution of 𝒑

𝑛𝑝 ≥ 0.5
𝑛(1 − p) ≥ 0.5
𝜎𝑥 = 𝑛𝑝(1 − 𝑝)
𝑝(1 − 𝑝)
𝜎𝑝ҧ =
𝑛
Type equation here.

𝜇𝑥 = 𝑛𝑝
𝜇𝑝ҧ = 𝑝

𝒙
𝒙~𝒃𝒊 ഥ = ~𝒏𝒐𝒓𝒎𝒂𝒍
𝒑
𝒏
 ഥ : Example
Sampling Distributions of 𝒑
The sampling distribution of 𝑝 has approximately a normal distributed for
“large” samples. A sample is “large” if
𝑛𝑝 ≥ 5
𝑛(1 − 𝑝) ≥ 5

Out of 2500 students, 1500 passed semester test 1.

Calculate the probability that 𝑝 is between ±0.05 of the

population proportion for n = 30.
1 500
𝑝= = 0.6
2 500
𝑃(0.55 < 𝑝ҧ < 0.65)
𝐸 𝑝 = 𝑝 = 0.6

𝑝(1−𝑝) 0.6(1−0.6)
𝜎𝑝 = = = 0.089
𝑛 30
 ഥ : Example
Sampling Distributions of 𝒑

Out of 2500 students, 1500 passed semester test 1.

Calculate the probability that 𝑝 is between ±0.05 of the
population proportion for 𝑛 = 30.
𝑝 = 0.6 𝐸 𝑝 = 𝑝 = 0.6 𝜎𝑝 = 0.089

First we standardize the values:

𝑝−𝑝 0.55−0.6 𝑝−𝑝 0.65−0.6

𝑧= = = −0.559 ≈ −0.56 and 𝑧 = = = 0.559 ≈ 0.56
𝜎𝑝 0.089 𝜎𝑝 0.089

Therefore,
𝑃(0.55 < 𝑝 < 0.65)
= 𝑃 −0.56 < 𝑧 < 0.56
= 𝑃 𝑧 < 0.56 − 𝑃 𝑧 < −0.56 = NORM.S.DIST(0.56) – NORM.S.DIST(-0.56)
= 0.7123 − 0.2877
= 0.4246
 ഥ : Example
Sampling Distributions of 𝒑

Out of 2500 students, 1500 passed semester test 1.

Calculate the probability that 𝑝 is between ±0.05 of the
population proportion for 𝑛 = 30.
𝑝 = 0.6 𝐸 𝑝 = 𝑝 = 0.6 𝜎𝑝 = 0.089

Answer using Excel’s NORM.DIST function:

𝑃 0.55 < 𝑝 < 0.65

= 𝑃 𝑝 < 0.65 − 𝑃 𝑝 < 0.55
= NORM.DIST(0.65, 0.6, 0.089, TRUE) – NORM.DIST(0.55, 0.6, 0.089, TRUE)
= 0.4238
 ഥ : Example
Sampling Distributions of 𝒑
Suppose that 70% of the students passed the re-exam.
A simple random sample of size 40 students is drawn.
Calculate the probability that more than three quarters passed the re-exam.

The question is: 𝑃(𝑝 > 0.75)

𝑝(1−𝑝) 0.7(1−0.7)
𝜎𝑝 = = = 0.072
𝑛 40

𝑝 − 𝑝 0.75 − 0.7
𝑧= = = 0.69006 ≈ 0.69
𝜎𝑝 0.072
Therefore,
𝑃(𝑝 > 0.75)
= 𝑃(𝑧 > 0.69)
= 1 − 𝑃(𝑧 < 0.69)
= 1 − 0.7549
= 0.2451
 ഥ : Example
Sampling Distributions of 𝒑
Suppose that 70% of the students passed the re-exam.
A simple random sample of size 40 students is drawn.
Let 𝑝 = sample proportion of students that passed for 𝑛 = 40. Calculate t
such that 𝑃 𝑝 ≤ 𝑡 = 0.9.

𝑝−𝑝
𝑧=
𝜎𝑝
𝑡 − 0.7
1.28 =
0.072

𝑡 = 1.28 0.072 + 0.7 = 0.792

Excel: t = NORM.INV(0.9, 0.7, 0.072) = 0.792

IN GENERAL: =NORM.INV(area to the left, 𝑝, 𝜎𝑝 )

 Absolute value questions:

𝑥 ≥ 𝑎: 𝑥 ≥ 𝑎 or 𝑥 ≤ −𝑎

𝑥 ≤ 𝑎: −𝑎 ≤ 𝑥 ≤ 𝑎

Given 𝜎𝑝 = 0.0115. What is the probability that the

sampling error of 𝑝 is less than 0.01?
 Absolute value questions:

Given 𝜎𝑝 = 0.0115. What is the probability that the

sampling error of 𝑝 is greater than 0.01?

𝑃 𝑝 − 𝑝 > 0.01
= 𝑃 𝑝 − 𝑝 > 0.01 + 𝑃 𝑝 − 𝑝 < −0.01
𝑝−𝑝 0.01 𝑝−𝑝 −0.01
=𝑃 > +𝑃 <
𝜎𝑝 0.0115 𝜎𝑝 0.0115
= 𝑃 𝑧 > 0.87 + 𝑃 𝑧 < −0.87
= 1 − 𝑃 𝑧 < 0.87 + 𝑃 𝑧 < −0.87
= 1 − 0.8078 + 0.1922 = 0.3844.
 Chapter 7: Learning Objectives

✓ understand the difference between a population

parameter, point estimator and point estimate ✓
✓
✓ be able to calculate the point estimators for ,  and p
✓ be able to calculate the sampling errors for the
sample mean, sample standard deviation and sample
proportion
✓
✓ understand the concept of a sampling distribution ✓
✓
✓ know the central limit theorem
✓
✓ know the characteristics of the sampling distribution
of the sample mean if population is normal ✓
✓ know the characteristics of the sampling distribution
of the sample mean if population is uniform ✓
✓ know the characteristics of the sampling distribution of
the sample proportion ✓