COMPLETE 5-1 fourth edi tion

BUSINESS STATISTICS

5 Sampling and Sampling Distributions


Using Statistics

Sample Statistics as Estimators of
Population Parameters

Sampling Distributions

Estimators and Their Properties

Degrees of Freedom

Using the Computer

Summary and Review of Terms
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COMPLETE 5-2 fourth edi tion
BUSINESS STATISTICS

5-1 Statistics is a Science of Inference

• Statistical Inference: On basis of sample statistics

– Predict and forecast values of
population parameters... derived from limited and
– Test hypotheses about values of incomplete sample
population parameters... information
– Make decisions...

Make
Make Onthe
On thebasis
basisofof
generalizationsabout
generalizations about observationsofofaa
observations
thecharacteristics
the characteristicsof
of sample,aapart
sample, partofofaa
aapopulation...
population... population
population

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COMPLETE 5-3 fourth edi tion
BUSINESS STATISTICS

The Literary Digest Poll (1936)

Unbiased
Sample
Unbiased, representative
sample drawn at random
Democrats Republicans from the entire
Population
population.

Biased
People who have phones Sample Biased, unrepresentative
and/or cars and/or are
Digest readers. sample drawn from
Democrats
people who have cars
Republicans
Population and/or telephones and/or
read the Digest.

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COMPLETE 5-4 fourth edi tion
BUSINESS STATISTICS
5-2 Sample Statistics as Estimators of
Population Parameters
• A sample statistic is a A population parameter is
numerical measure of a a numerical measure of a
summary characteristic of summary characteristic of
• a sample. a population.

• An estimator of a population parameter is a sample statistic

used to estimate or predict the population parameter.
• An estimate of a parameter is a particular numerical value
of a sample statistic obtained through sampling.
• A point estimate is a single value used as an estimate of a
population parameter.

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COMPLETE 5-5 fourth edi tion
BUSINESS STATISTICS

Estimators

•• The
The sample
sample mean,
mean, XX ,, isis the
the most
most common
common
estimator of
estimator of the
the population
population mean, mean, 
•• The
The sample
sample variance,
variance, ss22,, isis the
the most
most common
common
estimator of
estimator of the
the population variance, 22..
population variance,
•• The
The sample
sample standard
standard deviation,
deviation, s,s, isis thethe most
most
common estimator
common estimator ofof the
the population
population standard
standard
deviation, ..
deviation,
•• The
The sample
sample proportion,
proportion, p, ^p, is the most common
is the most common
estimator of
estimator of the
the population
population proportion,
proportion, p. p.

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COMPLETE 5-6 fourth edi tion
BUSINESS STATISTICS

Population and Sample Proportions

• The population proportion is equal to the number of

elements in the population belonging to the category of
interest, divided by the total number of elements in the
population: X
p
N
• The sample proportion is the number of elements in the
sample belonging to the category of interest, divided by
the sample size:
x
p 
n

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COMPLETE 5-7 fourth edi tion
BUSINESS STATISTICS

A Population Distribution, a Sample from a

Population, and the Population and Sample Means

Population mean ()

Frequency distribution
of the population

X X X X X X X
X X X X X X X
X X X X

Sample points

Sample mean (X )

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COMPLETE 5-8 fourth edi tion
BUSINESS STATISTICS

5-3 Sampling Distributions (1)

• The sampling distribution of a statistic is the

probability distribution of all possible values the
statistic may assume, when computed from
random samples of the same size, drawn from a
specified population.
• The sampling distribution of X is the probability
distribution of all possible values the random
variable X may assume when a sample of size n is
taken from a specified population.

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COMPLETE 5-9 fourth edi tion
BUSINESS STATISTICS

Sampling Distributions (2)

Uniform population of integers from 1 to 8:

X P(X) XP(X) (X-x) (X-x)2 P(X)(X-x)2 Uniform Distribution (1,8)
0.2
1 0.125 0.125 -3.5 12.25 1.53125
2 0.125 0.250 -2.5 6.25 0.78125
3 0.125 0.375 -1.5 2.25 0.28125
4 0.125 0.500 -0.5 0.25 0.03125

P(X)
5 0.125 0.625 0.5 0.25 0.03125 0.1
6 0.125 0.750 1.5 2.25 0.28125
7 0.125 0.875 2.5 6.25 0.78125
8 0.125 1.000 3.5 12.25 1.53125
0.0
1.000 4.500 5.25000 1 2 3 4 5 6 7 8
X

E(X) =  = 4.5
V(X) = 2 = 5.25
SD(X) =  = 2.2913

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COMPLETE 5-10 fourth edi tion
BUSINESS STATISTICS

Sampling Distributions (3)

• There are 8*8 = 64 different but Each of these samples has a sample
equally-likely samples of size 2 mean. For example, the mean of the
that can be drawn (with sample (1,4) is 2.5, and the mean of
replacement) from a uniform the sample (8,4) is 6.
population of the integers from
1 to 8: of Size 2 from Uniform (1,8)
Samples Sample Means from Uniform (1,8), n =
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
1 1,1 1,2 1,3 1,4 1,5 1,6 1,7 1,8 1 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
2 2,1 2,2 2,3 2,4 2,5 2,6 2,7 2,8 2 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
3 3,1 3,2 3,3 3,4 3,5 3,6 3,7 3,8 3 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5
4 4,1 4,2 4,3 4,4 4,5 4,6 4,7 4,8 4 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0
5 5,1 5,2 5,3 5,4 5,5 5,6 5,7 5,8 5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5
6 6,1 6,2 6,3 6,4 6,5 6,6 6,7 6,8 6 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0
7 7,1 7,2 7,3 7,4 7,5 7,6 7,7 7,8 7 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5
8 8,1 8,2 8,3 8,4 8,5 8,6 8,7 8,8 8 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0

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COMPLETE 5-11 fourth edi tion
BUSINESS STATISTICS

Sampling Distributions (4)

The probability distribution of the sample mean is called the
sampling distribution of the the sample mean.
Sampling Distribution of the Mean
Sampling Distribution of the Mean
P(X) XP(X) X-X (X-X)2 P(X)(X-X)2
0.10
0.015625 0.015625 -3.5 12.25 0.191406
0.031250 0.046875 -3.0 9.00 0.281250

P(X)
0.046875 0.093750 -2.5 6.25 0.292969 0.05
0.062500 0.156250 -2.0 4.00 0.250000
0.078125 0.234375 -1.5 2.25 0.175781
0.093750 0.328125 -1.0 1.00 0.093750
0.00
0.109375 0.437500 -0.5 0.25 0.027344
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0
0.125000 0.562500 0.0 0.00 0.000000
X
0.109375 0.546875 0.5 0.25 0.027344
0.093750 0.515625 1.0 1.00 0.093750

E ( X )   X  4.5
0.078125 0.468750 1.5 2.25 0.175781
0.062500 0.406250 2.0 4.00 0.250000
0.046875
0.031250
0.328125
0.234375
2.5
3.0
6.25
9.00
0.292969
0.281250 V ( X )   2X  2.625
0.015625 0.125000 3.5 12.25 0.191406
SD( X )   X  1.6202
1.000000 4.500000 2.625000

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COMPLETE 5-12 fourth edi tion
BUSINESS STATISTICS
Properties of the Sampling Distribution
of the Sample Mean
Uniform Distribution (1,8)

• Comparing the population 0.2

distribution and the sampling

P(X)
0.1

distribution of the mean:

– The sampling distribution is 0.0
1 2 3 4 5 6 7 8

more bell-shaped and X

symmetric. Sampling Distribution of the Mean

– Both have the same center.

0.10

– The sampling distribution of

P(X)
the mean is more compact, 0.05

with a smaller variance. 0.00

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0
X

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COMPLETE 5-13 fourth edi tion
BUSINESS STATISTICS

Relationships between Population Parameters and

the Sampling Distribution of the Sample Mean
The expected value of the sample mean is equal to the population mean:

E( X )     X X

The variance of the sample mean is equal to the population variance divided by
the sample size:

 2

V(X)  2
 X
X
n
The standard deviation of the sample mean, known as the standard error of
the mean, is equal to the population standard deviation divided by the square
root of the sample size:

SD( X )    X
X
n
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COMPLETE 5-14 fourth edi tion
BUSINESS STATISTICS

Sampling from a Normal Population

Whensampling
When samplingfrom
fromaanormal
normalpopulation
populationwith meanand
withmean andstandard
standard
deviation ,the
deviation, thesample
samplemean,
mean,X,
X,has
hasaanormal
normalsampling
samplingdistribution:
distribution:

2

X ~ N (, )
n

Thismeans
This meansthat,
that,as
asthe
the Sampling Distribution of the Sample Mean

samplesize
sample sizeincreases,
increases,the
the 0.4

samplingdistribution
sampling distributionof
ofthe
the 0.3
Sampling Distribution: n =16

Sampling Distribution: n =4
samplemean
sample meanremains
remains
f(X)
0.2

centeredon
centered onthe
thepopulation
population 0.1
Sampling Distribution: n =2
Normal population

mean,but
mean, butbecomes
becomesmore
more 0.0
Normal population


compactlydistributed
compactly distributedaround
around
thatpopulation
that populationmean
mean
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COMPLETE 5-15 fourth edi tion
BUSINESS STATISTICS

The Central Limit Theorem

When sampling
When sampling from fromaa population
population 0.25
n=5

with mean  and

with mean and finite
finite standard
standard 0.20
0.15

P(X)
, the
0.10

deviation ,
deviation the sampling
sampling 0.05
0.00
X

distribution of
distribution of the
the sample
sample mean
mean will
will
n=20
tend to
tend to aa normal
normal distribution
distribution with
with 0.2


mean  and
mean and standard
standard deviation
deviation as as

P(X)
0.1

n
the sample
the sample size
size becomes
becomes large
large 0.0
X

(n >30).
(n >30). Large n
0.4
0.3

n: X ~ N ( ,  )
f(X)
For “large
“large enough”
enough” n:
0.2
2
For 0.1
0.0

X
-

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COMPLETE 5-16 fourth edi tion
BUSINESS STATISTICS
The Central Limit Theorem Applies to
Sampling Distributions from Any Population
Normal Uniform Skewed General

Population

n=2

n = 30

 X  X  X  X

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COMPLETE 5-17 fourth edi tion
BUSINESS STATISTICS
The Central Limit Theorem
(Example 5-1)
Mercurymakes
Mercury makesaa2.42.4liter
literV-6
V-6engine,
engine,the
theLaser
LaserXRi,
XRi,used
usedininspeedboats.
speedboats. TheThe
company’sengineers
company’s engineersbelieve
believethe
theengine
enginedelivers
deliversan
anaverage
averagepower
powerof of220
220
horsepowerand
horsepower andthat
thatthe
thestandard
standarddeviation
deviationofofpower
powerdelivered
deliveredisis1515HP.
HP. AA
potentialbuyer
potential buyerintends
intendstotosample
sample100
100engines
engines(each
(eachengine
engineisistotobe
berun
runaasingle
single
time). What
time). Whatisisthe
theprobability
probabilitythat
thatthe
thesample
samplemean
meanwill
willbe
beless
lessthan
than217HP?
217HP?
 
 X   217   
P ( X  217)  P  
   
 n n 

   
 217  220   217  220
 P Z    P  Z  
 15   15 
 100   10 

 P ( Z  2)  0.0228

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COMPLETE 5-18 fourth edi tion
BUSINESS STATISTICS

Excel Output (Example 5-2)

EPS Mean Distribution

25

20

15
Frequency

10

5.00 - 5.49
2.00 - 2.49

3.00 - 3.49

6.00 - 6.49

7.00 - 7.49
4.00 - 4.49

Range

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COMPLETE 5-19 fourth edi tion
BUSINESS STATISTICS

Student’s t Distribution
IfIfthe
thepopulation
populationstandard
standarddeviation,
deviation,, ,isisunknown,
unknown,replace with
replacewith
thesample
the samplestandard
standarddeviation,
deviation,s.s. IfIfthe
thepopulation
populationisisnormal,
normal,the
the
X 
resulting statistic:
resulting statistic: t 
s
n
hasaattdistribution
has distributionwith
with(n
(n--1)
1)degrees
degreesof
offreedom.
freedom.
•• Thet tisisaafamily
The familyofofbell-shaped
bell-shapedand andsymmetric
symmetric
distributions,one
distributions, onefor foreach
eachnumber
numberofofdegree
degreeofof
freedom. Standard normal
freedom.
•• Theexpected
The expectedvalue
valueofoft tisis0.0. t, df=20
•• Thevariance
The varianceofoft tisisgreater
greaterthanthan1,1,but
but t, df=10
approaches11asasthe
approaches thenumber
numberofofdegrees
degreesofof
freedomincreases.
freedom increases. The Thet tisisflatter
flatterand
andhas
hasfatter
fatter
tailsthan
tails thandoes
doesthe
thestandard
standardnormal.
normal.

•• Thet tdistribution
The distributionapproaches
approachesaastandard
standardnormal
normal 

asasthe
thenumber
numberofofdegrees
degreesofoffreedom
freedomincreases
increases

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COMPLETE 5-20 fourth edi tion
BUSINESS STATISTICS
The Sampling Distribution of the Sample
Proportion, p
n=2, p = 0.3
Thesample
The sampleproportion
proportionisisthe
thepercentage
percentageof of 0 .5

successesininnnbinomial
binomialtrials.
trials. IIttisisthe
the
0 .4

successes 0 .3

P(X)
numberof
number ofsuccesses,
successes,X,X,divided
dividedby bythe the 0 .2

0 .1

numberof
number oftrials,
trials,n.n. 0 .0
0 1 2

n=10,p=0.3

X 0.3

Sample proportion: p  0.2

P(X)
0.1

0.0
0 1 2 3 4 5 6 7 8 9 10

Asthe
As thesample
samplesize,
size,n,n,increases,
increases,the
thesampling
sampling X

distributionof
distribution of p approaches
approachesaanormal
normal n=15, p = 0.3

distributionwith
withmean
meanppand andstandard
standard
0.2

distribution

P(X)
deviation p(1  p)
deviation
0.1

n 0.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 X

0 1 2 3 4 5 6 7 8 9 10 1112 13 1415
15 1515 15 15 15 15 15 151515 1515 15 1515 ^
p

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COMPLETE 5-21 fourth edi tion
BUSINESS STATISTICS

Sample Proportion (Example 5-3)

InInrecent
recentyears,
years,convertible
convertiblesports
sportscoupes
coupeshave
havebecome
becomeveryverypopular
popularininJapan.
Japan. Toyota
Toyota
isiscurrently
currentlyshipping
shippingCelicas
CelicastotoLos
LosAngeles,
Angeles,where
whereaacustomizer
customizerdoes doesaaroof
rooflift
liftand
and
shipsthem
ships themback
backtotoJapan.
Japan. Suppose
Supposethat
that25%
25%ofofallallJapanese
Japaneseininaagiven
givenincome
incomeandand
lifestylecategory
lifestyle categoryareareinterested
interestedininbuying
buyingCelica
Celicaconvertibles.
convertibles. AArandom
randomsample
sampleof of100
100
Japaneseconsumers
Japanese consumersininthethecategory
categoryofofinterest
interestisistotobe
beselected.
selected. What
Whatisisthe
theprobability
probability
thatatatleast
that least20%
20%of ofthose
thoseininthe
thesample
samplewill
willexpress
expressan aninterest
interestininaaCelica
Celicaconvertible?
convertible?

n  100
 
p  0.25
 p  p .20  p 
P ( p  0.20 )  P
 p (1  p )

p (1  p ) 

np  (100 )( 0.25)  25  E ( p)
 n n

 
p (1  p )

(.25)(.75)
 0.001875  V ( p)  .20  .25   
 .05
 P z    P z 
n 100
 (.25)(.75)
  .0433

p (1  p )  100

 0.001875  0.04330127  SD ( p)  P ( z  1.15)  0.8749
n

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COMPLETE 5-22 fourth edi tion
BUSINESS STATISTICS

5-4 Estimators and Their Properties

Anestimator
An estimatorof ofaapopulation
populationparameter
parameterisisaasample
samplestatistic
statisticused
usedto
to
estimatethe
estimate theparameter.
parameter. The
Themost
mostcommonly-used
commonly-usedestimator
estimatorof ofthe:
the:
PopulationParameter
Population Parameter SampleStatistic
Sample Statistic
Mean()
Mean () isisthe
the Mean(X)
Mean (X)
Variance(
Variance (22)) isisthe
the Variance(s(s22))
Variance
StandardDeviation
Standard Deviation()() isisthe
the StandardDeviation
Standard Deviation(s)(s)
Proportion(p)
Proportion (p) isisthe
the Proportion((p ))
Proportion

•• Desirable
Desirable properties
properties of
of estimators
estimators include:
include:
–– Unbiasedness
Unbiasedness
–– Efficiency
Efficiency
–– Consistency
Consistency
–– Sufficiency
Sufficiency

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COMPLETE 5-23 fourth edi tion
BUSINESS STATISTICS

Unbiasedness
Anestimator
An estimatorisissaid
saidto
tobe
beunbiased
unbiasedififits
itsexpected
expectedvalue
valueisisequal
equalto
to
thepopulation
the populationparameter
parameterititestimates.
estimates.

Forexample,
For example,E(X)=so
E(X)=sothe
thesample
samplemean
meanisisan
anunbiased
unbiasedestimator
estimator
ofthe
of thepopulation
populationmean.
mean. Unbiasedness
Unbiasednessisisan
anaverage
averageororlong-run
long-run
property. The
property. Themean
meanof
ofany
anysingle
singlesample
samplewill
willprobably
probablynotnotequal
equalthe
the
populationmean,
population mean,but
butthe
theaverage
averageof
ofthe
themeans
meansof ofrepeated
repeated
independentsamples
independent samplesfrom
fromaapopulation
populationwill
willequal
equalthe
thepopulation
population
mean.
mean.

Anysystematic
Any systematicdeviation
deviationof ofthe
theestimator
estimatorfrom
fromthe
thepopulation
population
parameterof
parameter ofinterest
interestisiscalled
calledaabias.
bias.

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COMPLETE 5-24 fourth edi tion
BUSINESS STATISTICS

Unbiased and Biased Estimators

{
Bias

An unbiased estimator is on A biased estimator is

target on average. off target on average.

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COMPLETE 5-25 fourth edi tion
BUSINESS STATISTICS

Efficiency
Anestimator
An estimatorisisefficient
efficientififitithas
hasaarelatively
relativelysmall
smallvariance
variance(and
(and
standarddeviation).
standard deviation).

An efficient estimator is, An inefficient estimator is, on

on average, closer to the average, farther from the
parameter being estimated.. parameter being estimated.
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COMPLETE 5-26 fourth edi tion
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Consistency and Sufficiency

Anestimator
An estimatorisissaid
saidto
tobe
beconsistent
consistentififits
itsprobability
probabilityof
ofbeing
beingclose
close
tothe
to theparameter
parameterititestimates
estimatesincreases
increasesasasthe
thesample
samplesize
sizeincreases.
increases.

Consistency

n = 10 n = 100
Anestimator
An estimatorisissaid
saidto
tobe
besufficient
sufficientififititcontains
containsall
allthe
theinformation
information
inthe
in thedata
dataabout
aboutthe
theparameter
parameterititestimates.
estimates.

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COMPLETE 5-27 fourth edi tion
BUSINESS STATISTICS

Properties of the Sample Mean

For a normal population, both the sample mean and
sample median are unbiased estimators of the
population mean, but the sample mean is both more
efficient (because it has a smaller variance), and
sufficient. Every observation in the sample is used in
the calculation of the sample mean, but only the middle
value is used to find the sample median.
In general, the sample mean is the best estimator of the
population mean. The sample mean is the most
efficient unbiased estimator of the population mean. It
is also a consistent estimator.
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COMPLETE 5-28 fourth edi tion
BUSINESS STATISTICS

Properties of the Sample Variance

Thesample
The samplevariance
variance(the
(thesum
sumofofthethesquared
squareddeviations
deviationsfrom
fromthe
the
samplemean
sample meandivided
dividedby
by(n-1))
(n-1))isisan
anunbiased
unbiasedestimator
estimatorof
ofthe
the
populationvariance.
population variance. In
Incontrast,
contrast,the
theaverage
averagesquared
squareddeviation
deviation
fromthe
from thesample
samplemean
meanisisaabiased
biased(though
(thoughconsistent)
consistent)estimator
estimatorofofthe
the
populationvariance.
population variance.


E (s )  E 
2  ( x  x )
2

 2
 (n  1) 

  ( x  x )2 
E  
2

 n 

Irwin/McGraw-Hill Aczel © The McGraw-Hill Companies, Inc., 1999

COMPLETE 5-29 fourth edi tion
BUSINESS STATISTICS

5-5 Degrees of Freedom (1)

Consider a sample of size n=4 containing the following data points:

x1=10 x2=12 x3=16 x4=?

and for which the sample mean is: x

 x
 14
n
Given the values of three data points and the sample mean, the
value of the fourth data point can be determined:
 x 12  14  16  x4 x 4  56  12  14  16
x=   14
n 4
x 4  56
12  14  16  x  56
4

Irwin/McGraw-Hill Aczel © The McGraw-Hill Companies, Inc., 1999

COMPLETE 5-30 fourth edi tion
BUSINESS STATISTICS

Degrees of Freedom (2)

If only two data points and the sample mean are known:
x  14
x1=10 x2=12 x3=? x4=?

The values of the remaining two data points cannot be uniquely

determined:
x 12  14  x  x4
3
x=   14
n 4

12  14  x  x4  56
3

Irwin/McGraw-Hill Aczel © The McGraw-Hill Companies, Inc., 1999

COMPLETE 5-31 fourth edi tion
BUSINESS STATISTICS

Degrees of Freedom (3)

Thenumber
The numberof ofdegrees
degreesofoffreedom
freedomisisequal
equalto
tothe
thetotal
totalnumber
numberof of
measurements(these
measurements (theseare
arenot
notalways
alwaysraw
rawdata
datapoints),
points),less
lessthe
thetotal
total
numberof
number ofrestrictions
restrictionson
onthe
themeasurements.
measurements. AArestriction
restrictionisisaa
quantitycomputed
quantity computedfrom
fromthe
themeasurements.
measurements.

Thesample
The samplemean
meanisisaarestriction
restrictionon
onthe
thesample
samplemeasurements,
measurements,so so
aftercalculating
after calculatingthe
thesample
samplemean
meanthere
thereare
areonly
only(n-1)
(n-1)degrees
degreesof
of
freedomremaining
freedom remainingwith
withwhich
whichtotocalculate
calculatethe
thesample
samplevariance.
variance.
Thesample
The samplevariance
varianceisisbased
basedonononly
only(n-1)
(n-1)free
freedata
datapoints:
points:

s
2

 (x  x)
2

(n  1)

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COMPLETE 5-32 fourth edi tion
BUSINESS STATISTICS

Example 5-4
AAcompany
companymanager
managerhashasaatotal
totalbudget
budgetof
of$150.000
$150.000totobe
becompletely
completelyallocated
allocatedtoto
fourdifferent
four differentprojects.
projects. How
Howmany
manydegrees
degreesofoffreedom
freedomdoes
doesthe
themanager
managerhave?
have?

xx11++xx22++xx33++xx44==150,000
150,000

AAfourth
fourthproject’s
project’sbudget
budgetcan
canbe
bedetermined
determinedfrom
fromthe
thetotal
totalbudget
budgetand
andthe
theindividual
individual
budgetsof
budgets ofthe
theother
otherthree.
three.For
Forexample,
example,if:
if:

xx1=40,000
1=40,000 xx2=30,000
2=30,000 xx3=50,000
3=50,000
Then:
Then:

xx4=150,000-40,000-30,000-50,000=30,000
4=150,000-40,000-30,000-50,000=30,000

Sothere
So thereare
are(n-1)=3
(n-1)=3degrees
degreesof
offreedom.
freedom.

Irwin/McGraw-Hill Aczel © The McGraw-Hill Companies, Inc., 1999

COMPLETE 5-33 fourth edi tion
BUSINESS STATISTICS

Using the Computer

Constructing a sampling distribution of the mean from a uniform population
(n=10):
MTB > random 200 c1-c10;
SUBC> uniform 0 1.
40
MTB > rmean c1-c10 c11
MTB > histo c11
30
Character Histogram

Freque ncy
20
Histogram of C11 N = 200
10
Midpoint Count
0.25 1 *
0.30 5 ***** 0
0.35 11 ***********
0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75
0.40 27 ***************************
C 11
0.45 36 ************************************
0.50 40 ****************************************
0.55 34 **********************************
0.60 21 *********************
0.65 18 ******************
0.70 6 ******
0.75 1 *

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COMPLETE 5-34 fourth edi tion
BUSINESS STATISTICS

Using the Computer

Constructing a sampling distribution of the mean from a uniform population (n=10)
using EXCEL (use RANDBETWEEN(0, 1) command to generate values to graph):
Histogram of Sample Means
250
CLASS MIDPOINT FREQUENCY
0.15 0
0.2 0
0.25 3 200
0.3 26
0.35 64
0.4 113
Frequency

0.45 183 150

0.5 213
0.55 178
0.6 128
0.65 65 100
0.7 20
0.75 3
0.8 3
0.85 0 50
999

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample Means (Class Midpoints)

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