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Chapter 8 Sampling Distributions

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10 views16 pages

Chapter 8 Sampling Distributions

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lumber jack
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CHAPTER 8:

Sampling Distributions
Business Mathematics 41
Sampling Distribution of the Mean

 The resulting collection of sample means could then be viewed as a new ran-
dom variable with its own mean and standard deviation.
 The probability distribution of these sample means is called the distribution of
sample means, or the sampling distribution of the mean
 The sampling distribution of the mean is defined as the probability distribution
of the sample means for all possible samples of that particular size.
Characteristics of Sampling Distri-
bution

 The sampling distribution of the mean will have the same mean as the original
population from which the samples were drawn
 The standard deviation of the sampling distribution of the mean is referred to as
the standard error of the mean, or
 If the original population is normally distributed, the sampling distribution of the
mean will also be normal
 If the original population is not normally distributed, the sampling distribution of
the mean will be approximately normal for large sample sizes and will more
closely approach the normal distribution as the sample size increases. Known as
the central limit theorem, this result will be an especially important topic in the
next section.
THE SAMPLING DISTRIBUTION OF THE
MEAN:
When the Population Is Normally Distributed
When a great many simple random samples of size n are drawn from a
population that is normally distributed, the sample means will also be
normally distributed.
Sampling Distribution
Ex We reported that the average annual number of hours flown by gen-

am
eral-aviation aircraft was 120 hours. For purposes of our discussion
here, we will continue to assume that the flying hours for these aircraft
are normally distributed with a standard deviation of 30 hours.

ple
1
Sampling Distribution
Ex A random variable is normally distributed with mean $1500 and stan-

am dard deviation $100. Determine the standard error of the sampling


distribution of the mean for simple random samples with the following

ple sample sizes:


a) n = 16

2 b) n = 400
c) n = 100
d) n = 1000
z-score for the sampling distribution
of the mean
Just as we can use the z-score to convert a normal distribution to a stan-
dard normal distribution, we can also convert a normally distributed sam-
pling distribution of means to a standard normal distribution. The z-score
formula for doing so is very similar to the one introduced in the previous
chapter:
z-Score
Ex For this example, we have a population of general-aviation aircraft,

am with the assumption of 120.0 flying hours and 30.0 flying hours. For a
Simple Random Sample of 36 Aircraft, What Is the Probability That the

ple Average Flying Time for the Aircraft in the Sample Was at Least 128.0
Hours?

3
z-Score
Ex For a random variable that is normally distributed, with 200 and 20,

am determine the probability that a simple random sample of 4 items will


have a mean that is

ple a) Greater than 210


b) Between 190 and 130

4 c) Less than 225


z-Score
Ex Employees in a large manufacturing plant worked an average of 62.0

am hours of overtime last year, with a standard deviation of 15.0 hours.


For a simple random sample of n = 36 employees and x = the number

ple of overtime hours worked last year, determine the z-score correspond-
ing to each of the following sample means:

5 a) x = 55.0 hours
b) x = 65.0 hours
c) x = 60.0 hours
d) x = 47.0 hours
THE SAMPLING DISTRIBUTION OF THE
MEAN:
When the Population Is Not Normally Distributed
The assumption of normality for a population isn’t always realistic, since in
many cases the population is either not normally distributed or we have no
knowledge about its actual distribution. However, provided that the sample
size is large (i.e., N 30), the sampling distribution of the mean can still be
assumed to be normal. This is because of what is known as the central
limit theorem.
Central Limit Theorem
For large, simple random samples from a population that is not normally
distributed, the sampling distribution of the mean will be approximately
normal, with the mean and the standard error . As the sample size (n) is
increased, the sampling distribution of the mean will more closely ap-
proach the normal distribution.
The Sampling Distribution of
the Proportion
The proportion of successes in a sample consisting of n trials will be

For simple random samples, the sampling distribution of the proportion can
be described as follows:
Sampling Distribution, Proportion
Ex According to the Bureau of the Census, 85.2% of adult residents of Oklahoma have completed

am
high school. What Is the Probability That No More Than 80% of the Persons in a Simple Ran-
dom Sample of 200 Adult Residents of Oklahoma Have Finished High School (i.e., the Probabil-
ity That p 0.800)?

ple
√ √
𝜋(1−𝜋) 0.852(1−0.852)
6 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑𝐸𝑟𝑟𝑜𝑟=𝜎𝑝= =
𝑛
=0.0251
200
Referring to the standard normal distribu-
tion table, the cumulative area to
z = -2.07 is 0.0192.
Sampling Distribution, Proportion
Ex It has been reported that 40% of U.S. workers employed as purchasing managers are fe-

am
males. In a simple random sample of U.S. purchasing managers, 70 out of the 200 are fe-
males. Given this information:
a) What is the population proportion?

ple b)
c)
What is the sample proportion?
What is the standard error of the sample proportion?

7
Sampling Distribution, Proportion
Ex According to the Investment Company Institute, 40% of U.S. households have an Individual

am
Retirement Account (IRA). Assuming the population proportion to be 0.40 and that a simple
random sample of 400 households has been selected:
a) What is the standard error of the sampling distribution of the proportion?

ple b) What is the probability that at least 35% of those in the sample will have an IRA?
c) What is the probability that between 38% and 45% of those in the sample will have an IRA?

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