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A Decision-Making Approach
7th Edition
Chapter 7
Introduction to
Sampling Distributions
Sampling Error = x - μ
where:
x = sample mean
μ = population mean
μ=
x i
x=
x i
N n
where:
μ = Population mean
x = sample mean
xi = Values in the population or sample
N = Population size
n = sample size
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 7-5
Example
◼ A sampling distribution is a
distribution of the possible values of
a statistic for a given size sample
selected from a population
μ=
x i
P(x)
N .3
18 + 20 + 22 + 24
= = 21 .2
4 .1
(x − μ) 2 0
σ= i
= 2.236 18 20 22 24 x
N A B C D
Uniform Distribution
μx =
x
=
18 + 19 + 21+ + 24
i
= 21
N 16
σx =
i x
(x − μ ) 2
.2 .2
.1 .1
0
x
0
18 19 20 21 22 23 24
_
18 20 22 24 x
A B C D
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 7-14
Properties of a Sampling
Distribution
◼ For any population,
◼ the average value of all possible sample means computed from
all possible random samples of a given size from the population
is equal to the population mean:
μx = μ Theorem 1
σ
μx = μ and
σx =
n Theorem 3
(n is greater than 5% of N)
and…
◼ Sampling is without replacement
(x − μ)
z=
Then
σ N−n
n N −1
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 7-18
Sampling Distribution Properties
◼ The sample mean is an unbiased estimator
Normal Population
Distribution
μ x
μx = μ
Normal Sampling
Distribution
(has the same mean)
μx
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc.
x
Chap 7-19
Sampling Distribution Properties
(continued)
◼ The sample mean is a consistent estimator
(the value of x becomes closer to μ as n increases):
Population
x
Small
sample size
As n increases,
x
σ x = σ/ n
Larger
decreases sample size
σ
μx = μ and σx =
n Theorem 4
the sampling
As the n↑
distribution
sample
becomes
size gets
almost normal
large
regardless of
enough…
shape of
population
Population Distribution
Sampling distribution
properties:
Central Tendency
μx = μ
μ x
Sampling Distribution
Variation
σ
σx =
(becomes normal as n increases)
Larger
n Smaller
sample size
sample
size
(Sampling with
replacement)
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc.
μx x
Chap 7-23
How Large is Large Enough?
Solution:
◼ Even if the population is not normally
distributed, the central limit theorem can be
used (n > 30)
◼ … so the sampling distribution of x is
approximately normal
◼ … with mean μ x = μ = 8
σ 3
◼ …and standard deviation σ x = n = 36 = 0.5
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 7-26
Example
(continued)
Solution (continued) -- find z-scores:
7.8 - 8 μ - μ 8.2 - 8
P(7.8 μ x 8.2) = P
x
3 σ 3
36 n 36
= P(-0.4 z 0.4) = 0.3108
Population Sampling Standard Normal
Distribution Distribution Distribution .1554
??? +.1554
? ??
? ? Sample Standardize
? ? ?
?
-0.4 0.4
μ=8 x 7.8
μx = 8
8.2 x μz = 0 z
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 7-27
Population Proportions, π
π = the proportion of the population having
some characteristic
◼ Sample proportion ( p ) provides an estimate
of π :
◼ Approximated by a
Sampling Distribution
normal distribution if: P( p )
.3
◼ nπ 5 .2
.1
n(1 − π) 5
0
0 .2 .4 .6 8 1
p
where
π(1 − π)
μp = π and
σp =
n
(where π = population proportion)
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 7-29
z-Value for Proportions
Standardize p to a z value with the formula:
p−π p−π
z= =
σp π(1 − π)
n
◼ If sampling is without replacement
and n is greater than 5% of the
π(1− π) N − n
population size, then σ p must use σp =
the finite population correction n N −1
factor:
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 7-30
Example
Standardized
Sampling Distribution Normal Distribution
.4251
Standardize