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Chapter7 SamplingDistribution

Chapter 7 of the Applied Statistics for Business course covers sampling distributions, focusing on the distribution of sample means and proportions. It explains the unbiased property of sample means, the Central Limit Theorem, and provides examples to illustrate these concepts. Additionally, it includes exercises and sample questions to reinforce understanding of the material.
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0% found this document useful (0 votes)
7 views18 pages

Chapter7 SamplingDistribution

Chapter 7 of the Applied Statistics for Business course covers sampling distributions, focusing on the distribution of sample means and proportions. It explains the unbiased property of sample means, the Central Limit Theorem, and provides examples to illustrate these concepts. Additionally, it includes exercises and sample questions to reinforce understanding of the material.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

FPT UNIVERSITY

———o0o———

Chapter 7:
Sampling Distribution

Course Name: Applied Statistics for Business

Lecturer: Dr. Duong Thi Viet An

Hanoi, 2025

Dr. Duong Thi Viet An Chapter 7: Sampling Distribution Hanoi, 2025 1 / 18


Content

1 7.1 Sampling Distributions

2 7.2 Sampling Distribution of the Mean

3 7.3 Sampling Distribution of the Proportion

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7.1 Sampling Distributions

7.1 Sampling Distributions

• A sampling distribution is a distribution of all of the possible values


of a sample statistic for a given sample size selected from a population.
For example, suppose you sample 50 students from your college regard-
ing their mean GPA. If you obtained many different samples of size 50,
you will compute a different mean for each sample. We are interested
in the distribution of all potential mean GPAs we might calculate for
samples of 50 students.

Dr. Duong Thi Viet An Chapter 7: Sampling Distribution Hanoi, 2025 3 / 18


7.2 Sampling Distribution of the Mean

7.2 Sampling Distribution of the Mean


The sampling distribution of the mean is the distribution of all
possible sample means if you select all possible samples of a given
size.

Example 1. Consider a population of four administrative assistants.


Each assistant is asked to apply the same set of updates to a human
resources database. The following table presents the number of errors
made by each of the administrative assistants.

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7.2 Sampling Distribution of the Mean

The population mean is


X
Xi
3+2+1+4
i
µ= =
= 2.5
N 4
The population standard deviation is
s r
1 X 2 2 1 2
σ= Xi − µ = (3 + 22 + 12 + 42 ) − 2.52 ≈ 1.12
N 4
i
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7.2 Sampling Distribution of the Mean

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7.2 Sampling Distribution of the Mean

The Unbiased Property of the Sample Mean


The mean of all the possible sample means (of a given sample size) is
equal to the population mean.

Note. The sample mean is an unbiased estimator of the population mean.

Dr. Duong Thi Viet An Chapter 7: Sampling Distribution Hanoi, 2025 7 / 18


7.2 Sampling Distribution of the Mean

Sampling Distribution of the Mean


If we sample from a population with mean µ and standard deviation
σ, then
σ
µX = µ, σX = √
n
(σX is called the standard error of the mean)
If the population is normally distributed, then X is also normally
distributed.
If the population is not normally distributed, then X is approximately
normally distributed for a sufficiently large sample size (The Central
Limit Theorem)

Dr. Duong Thi Viet An Chapter 7: Sampling Distribution Hanoi, 2025 8 / 18


7.2 Sampling Distribution of the Mean

Note.
When n ≥ 30, the sampling distribution of the mean is approximately
normal.
We can apply the Central Limit Theorem for even smaller sample
sizes if the population distribution is approximately bell-shaped.

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7.2 Sampling Distribution of the Mean

Finding Z for the sampling distribution of the mean


The Z value is equal to the difference between the sample mean, X, and
the population mean, µ, divided by the standard error of the mean, σX

X − µX X −µ
Z= = σ .
σX √
n

Finding X for the sampling distribution of the mean


σ
X = µ+Z√ .
n

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7.2 Sampling Distribution of the Mean

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7.2 Sampling Distribution of the Mean

Example 2. The diameter of a brand of tennis balls is approximately


normally distributed, with a mean of 2.63 inches and a standard deviation
of 0.03 inch. If you select a random sample of nine tennis balls,
a) what is the sampling distribution of the mean?
b) what is the probability that the sample mean is less than 2.61 inches?
c) what is the probability that the sample mean is between 2.62 and
2.64 inches?
d) The probability is 60% that the sample mean will be between what
two values symmetrically distributed around the population mean?

Dr. Duong Thi Viet An Chapter 7: Sampling Distribution Hanoi, 2025 12 / 18


7.3 Sampling Distribution of the Proportion

7.3 Sampling Distribution of the Proportion

The population proportion, π, is the proportion of items in the entire


population with the characteristic of interest.
The sample proportion p is used to estimate π.

Sample Proportion
X Number of items having the characteristic of interest
p= =
n Sample size

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7.3 Sampling Distribution of the Proportion

Sampling Distribution of a Sample Proportion


p is approximately normally distributed provided that nπ ≥ 5 and
n(1 − π) ≥ 5.
r
π(1 − π)
µp = π, σp =
n
(σp is called the standard error of the proportion)

Note. p is an unbiased estimator of the population proportion, π.

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7.3 Sampling Distribution of the Proportion

Example 3. What do millennials around the world want in a job?


A Deloitte survey of millennials on work-life challenges found that
millennials are looking for stability in an uncertain world, with 65% of
millennials preferring a permanent, full-time job rather than working
freelance or as a consultant on a flexible or short-term basis. Suppose
you select a sample of 100 millennials.
a) What is the probability that in the sample fewer than 70% prefer
a permanent, full-time job?
b) What is the probability that in the sample between 60% and
70% prefer a permanent, full-time job?
c) What is the probability that in the sample more than 70% prefer
a permanent, full-time job?

Dr. Duong Thi Viet An Chapter 7: Sampling Distribution Hanoi, 2025 15 / 18


7.3 Sampling Distribution of the Proportion

Exercises

Exercises: 7.6, 7.8, 7.10 (page 264), 7.12, 7.14, 7.18 (page 266-267).

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7.3 Sampling Distribution of the Proportion

Sample Questions

Question 1: The mean and the standard deviation of a population are


113.9 and 32.1, respectively. Find the mean and standard deviation of
the sampling distribution of the sample mean of size 64.
a) Mean = 113.9; standard deviation = 4.0
b) Mean = 113.9; standard deviation = 32.1
c) Mean = 113.9; standard deviation = 2.3
d) Mean = 4.0; standard deviation = 113.9

Dr. Duong Thi Viet An Chapter 7: Sampling Distribution Hanoi, 2025 17 / 18


7.3 Sampling Distribution of the Proportion

Sample Questions

Question 2: According to a survey, only 15% of customers who visited


the web site of a major retail store made a purchase.
What is the probability that a random sample of 50 will have at least
30% of customers who will make a purchase after visiting the web site?
Let
P (Z < −0.99) = 0.1611, P (Z < 2.97) = 0.9985,
P (Z < 0.3) = 0.6179, P (Z < 2.71) = 0.9966.
a) 0.0015
b) 0.9985
c) 0.0033
d) 0.9966

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