Scribd
Upload
37 views

Week 7 Sampling

The document discusses sampling and sampling distributions, explaining reasons for sampling such as saving time and money compared to a census, and how random and non-random sampling works. It also covers sampling error, non-sampling error, the central limit theorem which shows that sample means are normally distributed for large sample sizes regardless of the population distribution, and how to calculate probabilities involving sample means and proportions.

Uploaded by

kins
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
37 views

Week 7 Sampling

The document discusses sampling and sampling distributions, explaining reasons for sampling such as saving time and money compared to a census, and how random and non-random sampling works. It also covers sampling error, non-sampling error, the central limit theorem which shows that sample means are normally distributed for large sample sizes regardless of the population distribution, and how to calculate probabilities involving sample means and proportions.

Uploaded by

kins
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 29

BUS 232

Data and Decisions |


(Business Statistics)
Instructor: Negar Ganjouhaghighi
Week 7 – Chapter 7
Sampling and Sampling
Distributions
Sampling and Sampling Distribution

Reasons for sampling:

Braden the
Save money Save time scope of the
study

Accessing the
The sample can
population is
save product
impossible
Sampling and Sampling Distribution

Reasons for Census:

to eliminate the
possibility that by
chance a randomly for the safety of the to benchmark data for
selected sample may consumer future studies
not be representative
of the population
Random and Non-Random Sampling

• Random Sampling: AKA Probability sampling


• every unit of the population has the same probability of being
selected into the sample.
• Non Random Sampling: AKA nonprobability sampling
• each unit of the population has an unknown probability of being
included in the sample.
• selected because they are at the right place at the right time
• because they know the people conducting the research.
Sampling Error

The difference between the estimate obtained from the sample and the
population parameters as a result of the sample being only a subset of the
population

• Never can be completely


eliminated
• With random sampling: sampling
error can be computed and
analyzed.
Non-Sampling Error

All errors other than sampling errors:


• missing data
• Recording errors
• Input processing error
• Analysis error
• Selection Bias
• Defective questionnaire
• Improper definition of the frame
• Response error
Sampling Distribution of

Inferential Statistics process:


• random sample from the population
• Compute a statistic in the sample
• Reaches conclusion about the population parameter from the statistic
• To analyse the sample statistics
• Distribution of the statistic
Sampling Distribution of

Sample of 200 cereal boxes and weigh the contents to get a sample
average weight, , of 15.8 ounces.

Does that mean the population average is also 15.8 ounces?


If we could weigh all the cereal boxes produced, would we get a
population mean that is exactly 15.8?
Sampling Distribution of

Suppose we have a small finite population with N=8 numbers:


54, 55, 59, 63, 64, 68, 69, 70
Sampling Distribution of

n=2 (sample size)


All possible samples with replacement:
Sampling Distribution of

The mean of each of the samples are::


Sampling Distribution of

Data from a Poisson distribution with


Sampling Distribution of

Data from a uniform distribution a=10, b=30


Central Limit Theorem
Central Limit Theorem

If samples of size n are drawn randomly from a population that has a


mean of μ and a standard deviation of σ, the sample means, , are
approximately normally distributed for sufficiently large sample sizes (n
≥ 30) regardless of the shape of the population distribution.
If the population is normally distributed, the sample means are normally
distributed for any size sample.
Central Limit Theorem

Main Advantage:
sample means can be analyzed by using z scores

the mean of the statistic of interest is , and the standard deviation of the
statistic of interest is , sometimes referred to as the standard error of the
mean.
Central Limit Theorem

Example: Suppose, for example, that the mean expenditure per customer
at a grocery store is $85.00, with a standard deviation of $9.00. If a
random sample of 40 customers is taken, what is the probability that the
sample average expenditure per customer for this sample will be $87.00
or more?
Sample size>30
Central Limit Theorem

Example: Sample size>30

That is, 7.93% of the time, a random


sample of 40 customers from this
population will yield a sample mean
expenditure of $87.00 or more
Sampling from a Finite Population

Infinite population: the population is infinitely or extremely large


Finite population: a statistical adjustment:
n/N<0.05
Sampling from a Finite Population

Example: A production company’s 350 hourly employees average 37.6


years of age, with a standard deviation of 8.3 years. If a random sample
of 45 hourly employees is taken, what is the probability that the sample
will have an average age of less than 40 years?
Population mean: 37.6
Population SD: 8.3 %98.08

Sample size= 45, population size: 350. (13%)


Let’s solve problem 7.19…

Suppose a small town in British Columbia contains 1,500 houses. A


sample of 100 houses is selected randomly and evaluated by an
appraiser. If the mean appraised value of a house in this town for all
houses is $277,000, with a standard deviation of $10,500, what is the
probability that the sample average is greater than $285,000?
Let’s solve problem 7.20…

Suppose the average checkout tab at a large supermarket is $65.12, with


a standard deviation of $21.45. Twenty-three percent of the time when a
random sample of 45 customer tabs is examined, the sample average
should exceed what value?
Sampling Distribution of

• If research results in countable items:


• such as how many people in a sample choose Dr. Pepper as their
favourite soft drink
• how many people in a sample have a flexible work schedule
• the sample proportion is often the statistic of choice.
• the sample proportion is computed by dividing the frequency with
which a given characteristic occurs in a sample by the number of
items in the sample
Sampling Distribution of

• The central limit theorem applies to sample proportions in that the


normal distribution approximates the shape of the distribution of
sample proportions as the sample size gets larger, regardless of the
shape of the population distribution
• This convergence is achieved better when n·p > 5 and n·q > 5
• (p is the population proportion and q = 1 − p).
Sampling Distribution of

Standard deviation of sample


proportions, which is
sometimes referred to as the
standard error of the
proportion.
Sampling Distribution of

Suppose 60% of the electrical contractors


in a region use a particular brand of wire.
What is the probability of taking a random
sample of size 120 from these electrical
contractors and finding that 0.50 or less
use that brand of wire?
Let’s solve problem 7.23…

A population proportion is 0.58. Suppose a random sample of 660 items is


sampled randomly from this population.

a. What is the probability that the sample proportion is greater than 0.60?
b. What is the probability that the sample proportion is between 0.55 and
0.65?
Let’s solve problem 7.25…

If a population proportion is 0.28 and if the sample size is 140, 30% of the
time the sample proportion will be less than which value if you are taking
random samples?

You might also like