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We use sample information

to make decisions or inferences
Sampling about the population.
Methods Two KEY steps:
& 1. Choice of a proper method for selecting sample data
Central Limit Theorem &
2. Proper analysis of the sample data (more later)

KEY 1.
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Why Sample the Population?

KEY 1. Because…
If the proper
…of the physical impossibility of checking
method for selecting all items in the population, and,
also, it would be too time-consuming
the sample is
NOT MADE … the SAMPLE $ …the studying of all the items in a population
will not be truly would NOT be cost effective
representative of the
TOTAL Population! …the sample results are usually sufficient
… and wrong conclusions can be drawn!
 …the destructive nature of certain tests
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Techniques Methods
Simple Random ...each item(person) in the population
with Replacement without Replacement has an equal chance of being included
Each data unit in the Each data unit in the Systematic Random …items(people) of the population
population is allowed to population is allowed to are arranged in some order.
appear in the sample appear in the sample A random starting point is selected, and
more than once no more than once then every kth member of the population
Probability Sampling Non-Probability Sampling is selected for the sample
Stratified Random …a population is
Each data unit in the Does not involve first divided into subgroups, called strata,
population random selection; and a sample is selected from each strata
has a known likelihood inclusion of an item is Cluster …a population is
of being based on convenience first divided into primary units, and
included in the sample samples are selected from each unit
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The law firm of Hoya and Associates has five partners.

At their weekly partners meeting each reported the If two partners are selected randomly…
number of hours they billed their clients last week: how many different samples are possible?
Partner Hours
Example Partner Hours Objects
Dunn 22
Dunn 22
Hardy 26
Hardy 26
Kiers 30 …taken 2 at a time
Kiers 30 5
Malinowski 26
Malinowski 26 …for a Total of 10 Samples!
Tillman 22
Tillman 22
If two partners are selected randomly…
how many different samples are possible? Using 5C2 …
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If two partners are selected randomly… Partners Samples of 2 Mean

how many different samples are possible? 1&2 (22+26)/2 = 24
1&3 (22+30)/2 = 26
Partner Hours Objects 1&4 24
5C2 =
(22+26)/2 =
Dunn 22 1&5 (22+22)/2 = 22
Hardy 26 2&3 (26+30)/2 = 28
Kiers 30 5 5! 2&4 (26+26)/2 = 26
Malinowski 26 = 2&5 (26+22)/2 = 24
2! (5 – 2!) 3&4 (30+26)/2 = 28
Tillman 22 (30+22)/2 = 26
3&5
= 10 Samples
4&5 (26+22)/2 = 24
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Terminology
“Sampling error” … is the difference between Example …continued
Mean
a sample statistic 24 Organize the sample means
and its 26 into a Sampling Distribution
corresponding population 24
parameter Sample Frequency Relative frequency
22 Mean
“Sampling distribution … is a probability distribution Probability
28
of the sample mean” consisting of 26 22 1 1/10
all possible sample means 24
of a given sample size 24 4 4/10
28
selected from a population 26 3 3/10
26
Example 24 28 2 2/10
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Example …continued Example …continued

Compute the mean of the sample means.

Note The population mean is also the same as
Compare it with the population mean the sample means…25.2 hours!
Sample Mean Frequency
Partner Hours
µ = 22(1)+ 24(4)+ 26(3) + 28(2) Dunn 22
µ = 22 + 26 + 30 + 26 + 22
X
22 1
10 Hardy 26
24 4 5
Kiers 30
26 3 = 25.2 Malinowski 26 = 25.2
28 2 Tillman 22
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Central Limit Theorem Point Estimates

The sampling distribution of the means
A point estimate is one value ( a single point)
of all possible samples of size n
generated from the population that is used to estimate a population parameter
will be approximately normally distributed!
Sampling Distributions:  sample mean
Mean (µx ) µ sample standard deviation
Variance σ2 /n sample variance
Standard Deviation σ X
σ/ n
sample proportion
(standard error of the mean) More
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Point Estimates Central Limit Theorem

Population follows… Population does NOT follow… Chart 8 – 6 Results for Several Populations
the normal distribution the normal distribution
The sampling distribution If the sample is of at least 30
of the sample means also follows observations, the sample WILL
the normal distribution follow the normal distribution
Probability of a sample mean Probability of a sample mean
falling within a particular region, falling within a particular region,
use:
Z= X − µ use:
Z= X − µ
σ n s n

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Using the Sampling Distribution Using the Sampling Distribution
of the Sample Mean of the Sample Mean
Data… Data…
Suppose it takes an A consumer watchdog Suppose it takes an average of 330 minutes for
average of 330 minutes agency selects a random taxpayers to prepare, copy, and mail an income tax
for taxpayers to sample of 40 taxpayers return form. A consumer watchdog agency selects a
prepare, copy, and and finds the standard random sample of 40 taxpayers and finds the
mail an income tax deviation of the time standard deviation of the time needed is 80 minutes.
return form. needed is 80 minutes
What is the likelihood the sample mean
What is the standard error of the mean? is greater than 320 minutes?

Formula σ /√
√n = 80 / √ 40 = 12.6 nswer…
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Using the Sampling Distribution Using the Sampling Distribution
of the Sample Mean of the Sample Mean
Data…* average of 330 minutes *random sample of 40 Data…* average of 330 minutes *random sample of 40
* standard deviation is 80 minutes * standard deviation is 80 minutes
What is the likelihood the sample mean What is the likelihood the sample mean
is greater than 320 minutes? is greater than 320 minutes?

X −µ 2 Look up 0.79
1 Formula z= in Table
s n
Required Area =
320 − 330 a1 a1 =0.2852 a1
= = 0.79 0.2852 + .5 = 0.7852
80 40 320 330 320 330
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Mean µ and Variance σ

8- 23 2 8- 24
Sampling Distribution of
Proportion of a
Binomial Probability Distribution
The normal distribution
(a continuous distribution)
yields a good approximation of
the binomial distribution
(a discrete distribution)
Formula µ = np
for large values of n. Formula σ2 = np (1− p)
Use when np and n(1- p ) are both greater than 5!

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Sampling Distribution of Sampling Distribution of
Proportion Proportion
A multinational company claims that 55% of its …continued
employees are bilingual. To verify this claim, a X −µ
statistician selected a sample of 60 employees of the
Formula z=
s
company using simple random sampling and 1 Z = (0.48 -0.55) / 0.064 a1
found 48% to be bilingual.
Z = -1.09
Based on this information, .48 .55
what can we say about the company’s claim? 2 Look up 1.09 in Table
np = 60(.55) The sample size is big a1 =0.3621
= 33 enough to use the normal
approximation with a mean of Required Area
n(1- p ) = 60(.45) = .5 – 0.3621 = 0.1379
.55 and a standard deviation
= 27 of ⌦(.55)(.45)/60 = 0.064 or 14%
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Sampling Distribution of Sampling Distribution of
Proportion Mean
…continued
X −µ Suppose the mean selling price of a
Formula z= Conclusion litre of gasoline in Canada is $.659.
s
1 Z = (0.48 -0.55) / 0.064 There is
Further, assume the distribution is positively
Z = -1.09 approximately
skewed, with a standard deviation of $0.08.
a 14% chance
2 Look up 1.09 in Table
that the What is the probability of selecting a
a =0.3621 company’s claim sample of 35 gasoline stations and
Required Area is true, based on finding the sample mean within $.03 of
= .5 – 0.3621 = 0.1379 this sample. the population mean?
or 14%
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Sampling Distribution of Sampling Distribution of
Mean Mean
Data… mean selling price is $.659 SD of $0.08 Data… mean selling price is $.659 SD of $0.08
Sample of 35 gasoline stations Sample of 35 gasoline stations
Probability of sample mean within $.03? Probability of sample mean within $.03?
Find the z-scores for
Find areas from table…
.659 +/- .03 i.e. 0.629 and .689
We would expect about
z1 = X − µ = $. 629 − $. 659 = -2. 22 z 1 = -2.22 a1 = .4868 97%
s n $ 0 . 08 35 z 2 = 2.22 a2 = .4868 of the sample means to
be within $0.03 of the
$. 689 − $. 659 Required A = .9736
z2 = X −µ= = 2.22 population mean.
s n $ 0 . 08 35
.629 .689
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8- 31

This completes Chapter 8

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