MODULE 3

in

IE STAT 1 124 –
STATISTICAL ANALYSIS FOR
INDUSTRIAL ENGINEERING 1
 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

A. Course Code /Title : IE STAT 1 124 – STATISTICAL ANALYSIS FOR INDUSTRIAL

ENGINEERING 1
B. Module Number : Module 3 – Sampling Distribution
C. Time Frame : 2 weeks – 6 hours (week 6 and 7)
D. Materials : module, syllabus, online resources

I. Desired Learning Outcomes

At the end of this module, the learner should be able to:

1. Identify the Kinds of Sampling.

2. Solve using Central Limit Theorem.
3. Solve using Sampling Distribution of Means.
4. Solve using Sampling Distribution of Proportions.
5. Solve using Sampling Distribution of Differences.

II. Content/Discussion

A statistic, such as the sample mean or the sample standard deviation, is a number
computed from a sample. Since a sample is random, every statistic is a random variable: it
varies from sample to sample in a way that cannot be predicted with certainty. As a random
variable it has a mean, a standard deviation, and a probability distribution. The probability
distribution of a statistic is called its sampling distribution. Typically sample statistics are
not ends in themselves, but are computed in order to estimate the corresponding
population parameters

To draw inferences about a population using statistical techniques, the sample drawn
should be random. Associated with the members of a population is a random variable X.
The random variable 𝑋1 , 𝑋2, 𝑋3, . . . and 𝑋𝑛 .

For a sampling distribution we can compute a mean variance, standard deviation,

moments, etc. The standard deviation is called the standard error.

Any quantity obtained from a sample for the purpose of estimating a population
parameter is called a sample statistic or statistic.

Kinds of Sampling
1. If a sample of n elements is selected from a population of N elements using a
sampling plan in which each of the possible samples has the same chance of
selection then the sampling is said to be random and the resulting sample is a
simple random sample. Random sampling can be done for relatively small
populations by drawing lots or by using a table of random numbers.

2. When the population of interest consists of two or more subpopulations, or strata, a

sampling plan that ensures that each subpopulation is represented in the sample is
called stratified random sampling. It involves selecting a simple random sample
from each of a give numbers of strata.

3. A cluster sample is a simple random sample of clusters from the available clusters
in the population. Clusters are group of elements in the population of interest.

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

4. The kth systematic random sample involves the random selection of one of the
first k elements in an ordered population, and then the systematic selection of every
kth element thereafter.

The Mean and Standard Deviation of the Sample Mean

Suppose random samples of size n are drawn from a population with mean μ and
standard deviation σ. The mean 𝜇𝑥̅ and standard deviation 𝜎𝑥̅ of the sample mean satisfy
𝜎
𝜇𝑥̅ = 𝜇 and 𝜎𝑥̅ =
√𝑛

The first formula says that if we could take every possible sample from the
population and compute the corresponding sample mean, then those numbers would
center at the number we wish to estimate, the population mean μ.
The second formula says that averages computed from samples vary less than
individual measurements on the population do, and quantifies the relationship.

Examples:

1. The mean and standard deviation of the tax value of all vehicles registered in a
certain state are μ=$13,525 and σ=$4,180. Suppose random samples of size 100 are
drawn from the population of vehicles. What are the mean 𝜇𝑥̅ and standard
deviation𝜎𝑥̅ of the sample mean 𝑋̅?

Solution:
Given/s:
𝜇 = $13,525
𝜎 = $4,180
𝑛 = 100

𝜇𝑥̅ = 𝜇
𝝁𝒙̅ = $𝟏𝟑, 𝟓𝟐𝟓

𝜎
𝜎𝑥̅ =
√𝑛
$4,180
𝜎𝑥̅ =
√100
𝝈𝒙̅ = $𝟒𝟏𝟖

2. Random samples of size 225 are drawn from a population with mean 100 and
standard deviation 20. Find the mean and standard deviation of the sample mean.

Solution:
Given/s:
𝜇 = 100
𝜎 = 20
𝑛 = 225

𝜇𝑥̅ = 𝜇
𝝁𝒙̅ = 𝟏𝟎𝟎

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

𝜎
𝜎𝑥̅ =
√𝑛
20
𝜎𝑥̅ =
√225
𝝈𝒙̅ = 𝟏. 𝟑

3. A population has mean 75 and standard deviation 12.

a. Random samples of size 121 are taken. Find the mean and standard deviation
of the sample mean.
b. How would the answers to part (a) change if the size of the samples were
400 instead of 121?

Solution:

a. Given/s:
𝜇 = 75
𝜎 = 12
𝑛 = 121

𝜇𝑥̅ = 𝜇
𝝁̅𝒙 = 𝟕𝟓

𝜎
𝜎𝑥̅ =
√𝑛
12
𝜎𝑥̅ =
√121
𝝈𝒙̅ = 𝟏. 𝟎𝟗

b. Given/s:
𝜇 = 75
𝜎 = 12
𝑛 = 400

𝜇𝑥̅ = 𝜇
𝝁𝒙̅ = 𝟕𝟓

𝜎
𝜎𝑥̅ =
√𝑛
12
𝜎𝑥̅ =
√400
𝝈𝒙̅ = 𝟎. 𝟔

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

Sampling Distribution of Means

Central Limit Theorem

If random samples of n elements are drawn from a non-normal population with
finite mean µ and the standard deviation 𝜎, then when n is large, the sampling distribution
of the sample mean𝑥̅ is approximately normally distributed, with mean and standard
deviation
𝜎
𝜇𝑥̅ = 𝜇 and 𝜎𝑥̅ = 𝑛
√

The importance of the Central Limit Theorem is that it allows us to make probability
statements about the sample mean, specifically in relation to its value in comparison to the
population mean, as we will see in the examples. But to use the result properly we must
first realize that there are two separate random variables (and therefore two probability
distributions) at play:

1. X, the measurement of a single element selected at random from the population; the
distribution of X is the distribution of the population, with mean the population
mean μ and standard deviation the population standard deviation σ;
2. 𝑋̅, the mean of the measurements in a sample of size n; the distribution of 𝑋̅ is its
𝜎
sampling distribution, with mean 𝜇𝑥̅ = 𝜇 and standard deviation 𝜎𝑥̅ = 𝑛.
√

Examples:

1. Let 𝑋̅ be the mean of a random sample of size 50 drawn from a population with
mean 112 and standard deviation 40.

a. Find the mean and standard deviation of 𝑋̅.

Solution:

𝜇𝑥̅ = 𝜇
𝜇𝑥̅ = 112

𝜎
𝜎𝑥̅ =
√𝑛
40
𝜎𝑥̅ =
√50
𝜎𝑥̅ = 5.66

b. Find the probability that 𝑋̅ assumes a value between 110 and 114.
𝜇 =112

X=110 X=114

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

Solution:
110−112 114−112
𝑃(110 < 𝑋̅ < 114) = 𝑃( 5.66 < 𝑋̅ < 5.66 )
= 𝑃(−0.35 < 𝑋̅ < 0.35)
= 0.1368 < 𝑋̅ < 0.1368
= 0.1368 + 0.1368
= 𝟎. 𝟐𝟕𝟑𝟔 𝒐𝒓 𝟐𝟕. 𝟑𝟔%

c. Find the probability that 𝑋̅ assumes a value greater than 113.

𝜇 =112

X=113

Solution:
113 − 112
𝑃(𝑋̅ > 113) = 𝑃(𝑧 > )
5.66
= 𝑃(𝑧 > 0.18)
= 𝑃(0.0714)
= 0.5 − 0.0714
= 𝟎. 𝟒𝟐𝟖𝟔 𝒐𝒓 𝟒𝟐. 𝟖𝟔%

2. The numerical population of grade point averages at a college has mean 2.61 and
standard deviation 0.5. If a random sample of size 100 is taken from the population,
what is the probability that the sample mean will be between 2.51 and 2.71?

𝜇 =2.61

X=2.51 X=2.71

Solution:

𝜇𝑥̅ = 𝜇
𝜇𝑥̅ = 2.61

𝜎
𝜎𝑥̅ =
√𝑛
0.5
𝜎𝑥̅ =
√100
𝜎𝑥̅ = 0.05

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

2.51−2.61 2.71−2.61
𝑃(2.51 < 𝑋̅ < 2.71) = 𝑃( 0.05 < 𝑋̅ < 0.05 )
= 𝑃(−2 < 𝑋̅ < 2)
= 0.4772 < 𝑋̅ < 0.4772
= 0.4772 + 0.4772
= 𝟎. 𝟗𝟓𝟒𝟒 𝒐𝒓 𝟗𝟓. 𝟒𝟒%

Normally Distributed Populations

The Central Limit Theorem says that no matter what the distribution of the population is,
as long as the sample is “large,” meaning of size 30 or more, the sample mean is
approximately normally distributed. If the population is normal to begin with then the
sample mean also has a normal distribution, regardless of the sample size.

For samples of any size drawn from a normally distributed population, the sample mean is
𝜎
normally distributed, with mean 𝜇𝑥̅ = 𝜇 and standard deviation 𝜎𝑥̅ = 𝑛, where n is the
√
sample size.

Examples:

1. A prototype automotive tire has a design life of 38,500 miles with a standard
deviation of 2,500 miles. Five such tires are manufactured and tested. On the
assumption that the actual population mean is 38,500 miles and the actual
population standard deviation is 2,500 miles, find the probability that the sample
mean will be less than 36,000 miles. Assume that the distribution of lifetimes of
such tires is normal.

𝜇 =38.5

X=36

Solution:

𝜇𝑥̅ = 𝜇
𝜇𝑥̅ = 38.5

𝜎
𝜎𝑥̅ =
√𝑛
2.5
𝜎𝑥̅ =
√5
𝜎𝑥̅ = 1.12

36 − 38.5
𝑃(𝑋̅ < 36) = 𝑃(𝑧 < )
1.12
= 𝑃(𝑧 < −2.23)
= 𝑃(0.4871)
= 0.5 − 0.4871

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

= 𝟎. 𝟎𝟏𝟐𝟗 𝒐𝒓 𝟏. 𝟐𝟗%

That is, if the tires perform as designed, there is only about 1.29% chance that the
average of a sample of this size would be so low.

2. An automobile battery manufacturer claims that its midgrade battery has a mean
life of 50 months with a standard deviation of 6 months. Suppose the distribution of
battery lives of this particular brand is approximately normal.
a. On the assumption that the manufacturer’s claims are true, find the
probability that a randomly selected battery of this type will last less than 48
months.

𝜇 =50

X=48

Solution:

48 − 50
𝑃(𝑋 < 48) = 𝑃(𝑧 < )
6
= 𝑃(𝑧 < −0.33)
= 𝑃(0.1293)
= 0.5 − 0.1293
= 𝟎. 𝟑𝟕𝟎𝟕 𝒐𝒓 𝟑𝟕. 𝟎𝟕%

b. On the same assumption, find the probability that the mean of a random
sample of 36 such batteries will be less than 48 months.

𝜇 =50

X=48

Solution:

𝜇𝑥̅ = 𝜇
𝜇𝑥̅ = 50

𝜎
𝜎𝑥̅ =
√𝑛
6
𝜎𝑥̅ =
√36
𝜎𝑥̅ = 1

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

48 − 50
𝑃(𝑋̅ < 48) = 𝑃(𝑧 < )
1
= 𝑃(𝑧 < −2)
= 𝑃(0.4772)
= 0.5 − 0.4772
= 𝟎. 𝟎𝟐𝟐𝟖 𝒐𝒓 𝟐. 𝟐𝟖%

Sampling Distribution of Proportions

Suppose that a population is infinite and binomially distributed, with p and q = 1 – p.

Then a sampling distribution of proportions and whose mean 𝜇𝑝 and the standard
deviation 𝜎𝑝 are given
𝑝𝑞 𝑝(1−𝑝)
𝜇𝑝̂ = 𝑝 and 𝜎𝑝̂ = √ 𝑛 = √ 𝑛
Where 𝑞 = 1 − 𝑝

The Sampling Distribution of the Sample Proportion

For large samples, the sample proportion is approximately normally distributed, with
𝑝𝑞
mean 𝜇𝑝̂ = 𝑝 and standard deviation 𝜎𝑝̂ = √ 𝑛 .

A sample is large if the interval [𝑝 − 3𝜎𝑝̂ , 𝑝 + 3𝜎𝑝̂ ] lies wholly within the interval [0,1].

Examples:

1. Suppose that in a population of voters in a certain region 38% are in favour of

particular bond issue. Nine hundred randomly selected voters are asked if they
favour the bond issue.
a. Verify that the sample proportion 𝑃̂ computed from samples of size 900
meets the condition that its sampling distribution be approximately
normal.
Solution:
p=0.38 q=1-p=1-0.38=0.62
𝜇𝑝̂ = 𝑝
𝜇𝑝̂ = 0.38

𝑝𝑞 𝑝(1−𝑝)
𝜎𝑝̂ = √ 𝑛 = √ 𝑛

0.38(1 − 0.38)
𝜎𝑝̂ = √
900
𝜎𝑝̂ = 0.02

[𝑝 − 3𝜎𝑝̂ , 𝑝 + 3𝜎𝑝̂ ] = [0.38 − 3(0.02), 0.38 + 3(0.02)]

[𝒑 − 𝟑𝝈𝒑̂ , 𝒑 + 𝟑𝝈𝒑̂ ] = [𝟎. 𝟑𝟐, 𝟎. 𝟒𝟒]

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

Since computed value which are [0.32, 0.44] lies between [0,1], It is safe to assume the 𝑃̂ is
approximately normally distributed.

b. Find the probability that the sample proportion computed from a sample
of size 900 will be within 5 percentage points of the true population
proportion.
Solution:

[0.38 − 0.05, 0.38 + 0.05]

[0.33, 0.43]

0.33−0.38 0.43−0.38
𝑃(0.33 < 𝑃̂ < 0.43) = 𝑃( 0.02 < 𝑃̂ < 0.02 )
= 𝑃(−2.5 < 𝑃̂ < 2.5))
= 0.4938 < 𝑃̂ < 0.4938
= 0.4938 + 0.4938
= 𝟎. 𝟗𝟖𝟕𝟔 𝒐𝒓 𝟗𝟖. 𝟕𝟔%

2. An online retailer claims that 90% of all orders are shipped within 12 hours of
being received. A consumer group placed 121 orders of different sizes and at
different times of day; 102 orders were shipped within 12 hours.

a. Compute the sample proportion of items shipped within 12 hours.

Solution:
𝑥 102
𝑃̂ = = = 0.84
𝑛 121

b. Confirm that the sample is large enough to assume that the sample
proportion is normally distributed. Use p = 0.90, corresponding to the
assumption that the retailer’s claim is valid.
Solution:

𝜇𝑝̂ = 𝑝
𝝁𝒑̂ = 𝟎. 𝟗𝟎

𝑝𝑞 𝑝(1−𝑝)
𝜎𝑝̂ = √ 𝑛 = √ 𝑛

0.90(1 − 0.90)
𝜎𝑝̂ = √
121
𝝈𝒑̂ = 𝟎. 𝟎𝟑

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

[𝑝 − 3𝜎𝑝̂ , 𝑝 + 3𝜎𝑝̂ ] = [0.90 − 3(0.03), 0.90 + 3(0.03)]

[𝑝 − 3𝜎𝑝̂ , 𝑝 + 3𝜎𝑝̂ ] = [0.81, 0.99]

Since computed value which are [0.81, 0.99] lies between [0,1], It is safe to assume the 𝑃̂ is
approximately normally distributed.

c. Assuming the retailer’s claim is true, find the probability that a sample of
size 121 would produce a sample proportion so low as was observed in
this sample.

Solution:
0.84−0.90
𝑃(𝑃̂ ≤ 0.84) = 𝑃(𝑍 ≤ 0.03 )
= 𝑃(𝑍 ≤ −2)
𝑃(0.4772)
= 0.5 − 0.4772
= 𝟎. 𝟎𝟐𝟐𝟖 𝒐𝒓 𝟐. 𝟐𝟖%

Sampling Distribution of Differences

Suppose that we are given two populations, then the sampling distribution of the
difference of two means is given by

𝜇𝑥1−𝑥2 = 𝜇1 − 𝜇2 and

𝜎2 𝜎2
𝜎𝑥1−𝑥2 = √𝑛1 + 𝑛2
1 2

The standardized variable is

(𝑋̅1 −𝑋̅2 )−(𝜇1 −𝜇2 )
𝑍=
𝜎 2
𝜎 2
√ 1+ 2
𝑛1 𝑛2

Example:

1. An electrical appliance made by Company A has an average life of 2500 hours, with a
SD of 500 hours. Another Company, B, makes this appliance with an average life of
2300 hours, and a SD of 800 hours. We take 300 Company A devices and 200
Company B devices. Calculate the probability that the average life of the sample
from Company A isn’t 100 hours more than the average life of the sample from
Company B.

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 DON HONORIO VENTURA STATE UNIVERSITY
Villa de Bacolor, Pampanga
College of Engineering and Architecture
Department of Industrial Engineering

Solution:

𝜇𝑥1−𝑥2 = 𝜇1 − 𝜇2

𝜇𝑥1−𝑥2 = 2500 − 2300

𝜇𝑥1−𝑥2 = 200

𝜎12 𝜎22
𝜎𝑥1 −𝑥2 =√ +
𝑛1 𝑛2

(500)2 (800)2
𝜎𝑥1 −𝑥2 = √ +
300 200
𝜎𝑥1 −𝑥2 = 63.51

100−200
𝑃(𝑥̅1 − 𝑥̅2 ≤ 100) = 𝑃(𝑍 ≤ )
63.51
= 𝑃(𝑍 ≤ −1.57)
= 𝑃(0.4418)
= 0.5 − 0.4418
= 𝟎. 𝟎𝟓𝟖𝟐 𝒐𝒓 𝟓. 𝟖𝟐%

III. References:

1. Kenett, Ron. Modern Industrial Statistics: Design and Control, Quality and
Reliability. Pacific Grove: Duxbury Press, 1989
2. Acheson, Duncan. Industrial Statistics. Richard Irwin, Inc., 1974
3. Statistics & Probability (A Simplified Approach) by Caras, Gumboc, Salamat, Sta.
Maria, and Cabero
4. Basic Statistics, Elizabeth B. Parreño & Ronel O. Jimenez

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