5-1

Sampling and Sampling Distributions

By:

Amsalu B. (MSc.)

Lecturer, Department of Economics

Wolkite University

Email: [email protected]

Wolkite, Addis Ababa, Ethiopia 1

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Sampling and Sampling Distributions
• Sampling is a representative sample or portion of elements of a
population or process is selected and then analyzed.
• The sampling distribution of is the probability distribution of
all possible values of the sample mean.
• Sample distribution is the distribution of measured values of
statistic in random samples drawn from a given population.
• When the mean values obtained from samples are distributed
normally, it implies that this distribution is useful for describing
the characteristics (properties) of sampling distribution.
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Cont’d
• The properties of sampling distribution, help to frame rules for
making statistical inferences about a population on the basis of
a single sample drawn from it, that is, without even repeating
the sampling process.
• When the population has a normal distribution, then the
probability distribution provides a useful description of the
distribution of population values.
• Population distribution is the distribution of values of its
elements members and has mean denoted by µ, variance σ2
and standard deviation σ.
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Sampling Distribution of Mean
 Sampling Distribution of the mean from normal population

 For any given sample of size n taken from a population with

mean µ and standard deviation σ, the sampling distribution of
a sample statistic, such as mean and standard deviation are
defined respectively by;
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Cont’d

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Cont’d

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Central Limit Theorem
 In selecting random samples of size n from a population, the
sampling distribution of the sample mean can be approximated
by a normal distribution as the sample size becomes large.
 Use the central limit theorem is to solve problems involving
sample means for large samples.
 As the sample size n increases without limit, the shape of the
distribution of the sample means taken with replacement from a
population with mean and standard deviation will approach a
normal distribution.
 5-8
Cont’d
 It’s important to remember two things when you use the
central limit theorem:
 When the original variable is normally distributed, the

distribution of the sample means will be normally distributed,

for any sample size n.
 When the distribution of the original variable might not be

normal, a sample size of 30 or more is needed to use a

normal distribution to approximate the distribution of the
sample means. Because the larger the sample, the better the
approximation will be.
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Cont’d

• Comparing the population

distribution and the sampling Unif orm Distribution (1,8)
0.2

distribution of the mean:

P (X )
• The sampling distribution is more 0.1

bell-shaped and symmetric.

0.0
1 2 3 4 5 6 7 8

• Both have the same center. X

Sampling Distribution of the Mean

• The sampling distribution of the
mean is more compact, with a 0.10

smaller variance. P(X)

0.05

0.00
1 .0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0
X
 5-10

Cont’d
Normal Uniform Skewed General

Population

n=2

n = 30

 X  X  X  X

The Central Limit Theorem Applies to Sampling Distributions from Any Population
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Cont’d
• When the data values are evenly distributed about the mean, a
distribution is said to be a symmetric distribution.
• When the majority of the data values fall to the left or right of the
mean, the distribution is said to be skewed.
• When the majority of the data values fall to the right of the mean,
the distribution is said to be a negatively or left-skewed
distribution.
• The mean is to the left of the median, and the mean and the
median are to the left of the mode.
• When the majority of the data values fall to the left of the mean, a
distribution is said to be a positively or right-skewed distribution.
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Cont’d
 In particular, if the sampling distribution of x is normal, the
standard error of the mean σx can be used in conjunction with
normal distribution to determine the probabilities of various
values of sample mean.

 For this purpose, the value of sample mean x is first converted

into a value z on the standard normal distribution to know
how any single mean value deviates from the mean x of sample
mean values, by using the formula.
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Z- Standard Normal Distribution Table (Right)
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Z- Standard Normal Distribution Table (Left)
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Cont’d
 Example 1: A survey found that women spend on average $146.21
on beauty products during the summer months. Assume the
standard deviation is $29.44. Find the percentage of women
who spend less than $160.00. Assume the variable is normally
distributed at 70 percent.
 Solution:

 Hence $160.00 is 0.47 of a standard deviation above the mean of

$146.21, as shown in the z distributions.
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Cont’d

 The area under the curve to the left of z = 0.47 is 0.6808.

 Therefore 0.6808, or 68.08% of the women spend less than
$160.00 on beauty products during the summer months.
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Cont’d
• Example 2: The average age of a vehicle registered in the US is 8
years, or 96 months. Assume the standard deviation is 16
months. If a random sample of 36 vehicles is selected, find the
probability that the mean of their age is between 90 and 100
months.

• Solution: Since the sample is 30 or larger, the normality

assumption is not necessary.
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Cont’d
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Cont’d
• To find the area between the two z values of -2.25 and 1.50, look
up the corresponding area in table and subtract one from the
other.
• The area for z = -2.25 is 0.0122, and the area for z = 1.50 is
0.9332.
• Then the area between the two values is 0.9332 - 0.0122 = 0.9210,
or 92.1%.
• Hence, the probability of obtaining a sample mean between 90
and 100 months is 92.1%; that is, P(90< x < 100) = 92.1%.
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Margin of Error and the Interval Estimate
 Interval estimate of a population mean: σ known

 Where (1 -α) is the confidence coefficient and Zα/2 is the z value

providing an area of α/2 in the upper tail of the standard normal
probability distribution.
 Note that:
 A narrower confidence interval is more precise

 Larger samples give more precise estimates

 Small variance leas to more precise estimates

 Lower confidence coefficients allow us to construct more precise

estimate
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Cont’d
 Values of zα/2 for the most commonly used confidence
levels.

 Comparing the results for the 90%, 95%, and 99% confidence
levels, we see that in order to have a higher degree of confidence,
the margin of error and thus the width of the confidence interval
must be larger.
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Cont’d
 Example: assumes that a known value of σ = $20 for the
population standard deviation the sample size (n = 100) and
obtained a sample mean of (x= $82). Solution:
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Cont’d
 Let us use expression to construct a 95% confidence interval. For a 95%
confidence interval, the confidence coefficient is (1 - α) = .95 and thus, α =
.05. Using the standard normal probability table, an area of α/2 = .05/2 = .025
in the upper tail provides z.025 = 1.96. With the sample mean 82, and σ = 20,
and a sample size n= 100, we obtain .

 Thus, using expression, the margin of error is 3.92 and the 95%
confidence interval is 82 - 3.92 = 78.08 to 82 - 3.92 = 85.92.
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Student’s t Distribution
• When s is used to estimate σ, the margin of error and the
interval estimate for the population mean are based on a
probability distribution known as the t distribution.

• Although the mathematical development of the t distribution is

based on the assumption of a normal distribution for the
population we are sampling from, research shows that the t
distribution can be successfully applied in many situations where
the population deviates significantly from normal.

• The t distribution is a family of similar probability

distributions, with a specific t distribution depending on a
parameter known as the degrees of freedom.
 5-25
Cont’d
 5-26
Cont’d
• The t is a family of bell-shaped and symmetric distributions,
one for each number of degree of freedom.

• The expected value of t is 0.

• The variance of t is greater than 1, but approaches 1 as the number

of degrees of freedom increases.

• The t is flatter and has fatter tails than does the standard normal.

• The t distribution approaches a standard normal as the number of

degrees of freedom increases.
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Cont’d
 The t-distribution is symmetrical, bell-shaped and has zero as its
mean. The interval estimate of the population mean for the
small-sample case with  unknown is given by:

 Where:
 Where s is the sample standard deviation, (1-α) is the

confidence coefficient, and tα/2 is the t-value providing an area

of α/2 in the upper tail of a t-distribution with n – 1 degrees of
freedom.
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Cont’d
• Each sample distribution is a discrete distributions. Because the
value of the sample mean would vary from sample to sample.
• This variability serves as the basis for the random sampling
distribution.
• The standard deviation which measures the variability among
all possible values of the sample values, is considered as a good
approximation of the population’s standard deviations σ.
• The reason the number of degrees of freedom associated with the
t value in expression is n - 1 concerns the use of s as an estimate
of the population standard deviation σ.
• The expression for the sample standard deviation is
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Cont’d

 Where:
 n is the size of sample.
 The new value n – 1 in the denominator results into higher
value of s than the observed value s of the sample. Here n – 1 is
also known as degree of freedom.
 The number of degrees of freedom, df = n – 1 indicate the
number of values that are free to vary in a random sample.
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Cont’d
• Interval estimate of a population mean:

• where s is the sample standard deviation, (1-α) is the confidence

coefficient, and tα/2 is the t value providing an area of α/2 in the
upper tail of the t distribution with n-1 degrees of freedom.
 t – distribution table -1 5-31

•
 t – distribution table -2, (continued) 5-32

•
t – distribution table -3 (continued) 5-33
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Cont’d
• Example 1: Training time in days for a sample of 20 ABC
industries employees

• Solution:
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Cont’d

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Determining Sample The Size

Reading Assignment!!!
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THANKS!!!

THANKS!!! 37