Professional Documents
Culture Documents
Chapter 7
Chapter 7
Essentials of Modern
Business Statistics (7e)
Anderson, Sweeney, Williams, Camm, Cochran
© 2018 Cengage Learning
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 1
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
Chapter 7
Sampling and Sampling Distributions
▪ Selecting a Sample
▪ Point Estimation
▪ Introduction to Sampling Distributions
▪ Sampling Distribution of 𝑥ҧ
▪ Sampling Distribution of 𝑝ҧ
▪ Other Sampling Methods
▪ Big data and errors in Sampling
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Essentials of Modern Business Statistics (7e)
Introduction
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Essentials of Modern Business Statistics (7e)
Introduction
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Essentials of Modern Business Statistics (7e)
Selecting a Sample
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 7
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Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 8
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 9
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 10
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 11
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 12
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 13
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 14
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 15
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 16
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
Point Estimation
▪ Point estimation is a form of statistical inference.
▪ In point estimation we use the data from the sample to compute a value
of a sample statistic that serves as an estimate of a population
parameter.
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Essentials of Modern Business Statistics (7e)
Point Estimation
Example: EAI Employee Data
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Essentials of Modern Business Statistics (7e)
Point Estimation
Annual Salary Management Annual Salary Management Annual Salary Management
($) Training ($) Training ($) Training
Program Program Program
X1 = 49094.30 YES 45,922.60 YES 45,120.90 YES
X2 = 53263.90 YES 57,268.40 NO 51,753.00 YES
49,643.50 YES 55,688.40 YES 54,391.80 NO
49,894.90 YES 51,564.70 NO 50,164.20 NO
47,621.60 NO 56,188.20 NO 52,973.60 NO
55,924.00 YES 51,766.00 YES 50,241.30 NO
49,092.30 YES 52,541.30 NO 52,793.90 NO
51,404.40 YES 44980.00 YES 50,979.40 YES
50,957.70 YES 51,932.60 YES 55,860.90 YES
55,109.70 YES 52,973.00 YES 57,309.10 NO
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 19
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
Point Estimation
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Essentials of Modern Business Statistics (7e)
Point Estimation
Example: EAI Employee Data
▪ 𝑥ҧ as Point Estimator of
σ 𝑥𝑖 1,554,420
𝑥ҧ = = = $51,814
𝑛 30
▪ s as Point Estimator of
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
Practical Advice
▪ The target population is the population we want to make inferences
about.
▪ The sampled population is the population from which the sample is
actually taken.
▪ Whenever a sample is used to make inferences about a population,
we should make sure that the targeted population and the sampled
population are in close agreement.
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
▪ Process of Statistical Inference
Population A simple random sample
with mean of n elements is selected
=? from the population.
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
▪ The sampling distribution of 𝑥ҧ is the probability distribution of all
possible values of the sample mean 𝑥.ҧ
▪ Expected Value of 𝑥ҧ
E(𝑥)ҧ =
where: = the population mean
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
▪ We will use the following notations to define the standard deviation
of the sampling distribution of 𝑥.ҧ
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Standard Deviation of 𝑥ҧ
Finite Population Infinite Population
𝑁−𝑛 𝜎 𝜎
𝜎𝑥ҧ = 𝜎𝑥ҧ =
𝑁−1 𝑛 𝑛
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
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Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 30
otherwise on a password-protected website or school-approved learning management system for classroom use.
Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Example: EAI Employee Data
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Example: EAI Employee Data
What is the probability that the sample mean computed using a simple
random sample of 30 employees will be within $500 of population
mean?
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Example: EAI Employee Data
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Example: EAI Employee Data
Cumulative Probabilities for
the Standard Normal Distribution
Z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09
. . . . . . . . . . .
.5 .6915 .6950 .6985 .7019 .7054 .7088 .7123 .7157 .7190 .7224
.6 .7257 .7291 .7324 .7357 .7389 .7422 .7454 7.486 .7517 .7549
.7 .7580 .7611 .7642 .7673 .7704 .7734 .7764 .7794 .7823 .7852
.8 .7881 .7910 .7939 .7967 .7995 .8023 .8051 .8078 .8106 .8133
.9 .8159 .8186 .8212 .8238 .8264 .8289 .8315 .8340 .8365 .8389
. . . . . . . . . . .
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Example: EAI Employee Data
Step 4: Find the area under the curve to the left of the lower endpoint.
P(z < -.68) = .2483
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Example: EAI Employee Data
Step 5: Calculate the area under the curve between the lower
and upper endpoints of the interval.
P(51,300 < 𝑥ҧ < 52,300 ) = P(z < .68) - P(z < -.68)
= .7517 - .2483
= .5034
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑥ҧ
Example: EAI Employee Data
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 40
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Essentials of Modern Business Statistics (7e)
© 2018Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or 41
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
▪ We follow the same steps to solve for P(51300 < 𝑥ҧ < 52300) when n = 100 as we
showed earlier when n = 30.
▪ Because the sampling distribution with n = 100 has a smaller standard error,
the values of 𝑥ҧ have less variability and tend to be closer to the population
mean than the values of 𝑥ҧ with n = 30.
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
▪ Making inferences about a population proportion
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
▪ The sampling distribution of 𝑝ҧ is the probability distribution of all
possible values of the sample proportion 𝑝.ҧ
▪ Expected Value of 𝑝ҧ
E(𝑝)ҧ = 𝑝
where: p = the population proportion
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
▪ Standard Deviation of 𝑝ҧ
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
.6(1−.6)
𝜎𝑝ҧ =
30
= .0894
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
Step 2: Find the area under the curve to the left of the upper
endpoint.
P(z < .56) = .7123
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
Z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09
. . . . . . . . . . .
.5 .6915 .6950 .6985 .7019 .7054 .7088 .7123 .7157 .7190 .7224
.6 .7257 .7291 .7324 .7357 .7389 .7422 .7454 7.486 .7517 .7549
.7 .7580 .7611 .7642 .7673 .7704 .7734 .7764 .7794 .7823 .7852
.8 .7881 .7910 .7939 .7967 .7995 .8023 .8051 .8078 .8106 .8133
.9 .8159 .8186 .8212 .8238 .8264 .8289 .8315 .8340 .8365 .8389
. . . . . . . . . . .
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
Step 4: Find the area under the curve to the left of the lower endpoint.
P(z < -.56) = . 2877
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
Step 5: Calculate the area under the curve between the lower and
upper endpoints of the interval.
P(-.56 < z < .56) = P(z < .56) - P(z < -.56)
= .7123 - .2877
= .4246
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Essentials of Modern Business Statistics (7e)
Sampling Distribution of 𝑝ҧ
Example: EAI Employee Data
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
Cluster Sampling
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Essentials of Modern Business Statistics (7e)
Cluster Sampling
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Essentials of Modern Business Statistics (7e)
Systematic Sampling
▪ If a sample size of n is desired from a population containing N
elements, we might sample one element for every n/N elements in
the population.
▪ We randomly select one of the first n/N elements from the
population list.
▪ We then select every n/Nth element that follows in the population
list.
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Essentials of Modern Business Statistics (7e)
Systematic Sampling
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Essentials of Modern Business Statistics (7e)
Convenience Sampling
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Essentials of Modern Business Statistics (7e)
Convenience Sampling
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Essentials of Modern Business Statistics (7e)
Judgment Sampling
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Essentials of Modern Business Statistics (7e)
Judgment Sampling
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Essentials of Modern Business Statistics (7e)
Recommendation
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Essentials of Modern Business Statistics (7e)
Errors in Sampling
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Essentials of Modern Business Statistics (7e)
Errors in Sampling
❑ Reasons for Nonsampling Errors
▪ Coverage error
▪ Non-response error
• Interviewer error
• Processing error
▪ Measurement error
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Essentials of Modern Business Statistics (7e)
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Essentials of Modern Business Statistics (7e)
End of Chapter 7
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