STATISTICS

Week 6
Sampling and Sampling Distributions
 Topics

1. Introduction : Data and Statistics

2. Descriptive Statistics
3. Introduction to Probability
4. Discrete Probability Distributions
5. Continuous Probability Distributions
6. Sampling and Sampling Distributions
7. Interval Estimation
8. Hypothesis Tests
9. Analysis of Variance
10. Simple Linear Regression
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 References

• Anderson, David R., Sweeney, Dennis J., Williams, Thomas A.

(2011). Statistics for Business and Economics. 11. Cengage
Learning. USA. ISBN: 978-0538481649.

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Evaluating and Grading

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 Learning Outcomes

• LO 1: Explain the data and statistics

• LO 2: Calculate the statistical measurements
• LO 3: Interpret the results of statistical measurements
• LO 4: Apply statistical method to the real problem
• LO 5: Analyze the suitable decision from statistical method
solution

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(4) Apply Statistical Method to the Real Problem

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1. Properties of Sampling Parameters

2. Distribution of Sampling Parameters

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• The purpose of statistical inference is to obtain information
about a population from information contained in a sample.
• A population is the set of all the elements of interest.
• A sample is a subset of the population.

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• The sample results provide only estimates of the values of the
population characteristics.
• A parameter is a numerical characteristic of a population.
• With proper sampling methods, the sample results will provide
“good” estimates of the population characteristics.

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• Finite Population

– A simple random sample from a finite population of size N is

a sample selected such that each possible sample of size n
has the same probability of being selected.

– Replacing each sampled element before selecting

subsequent elements is called sampling with replacement.

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– Sampling without replacement is the procedure
used most often.

– In large sampling projects, computer-generated

random numbers are often used to automate the
sample selection process.

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• Infinite Population

– A simple random sample from an infinite population is

a sample selected such that the following conditions
are satisfied.

• Each element selected comes from the same

population.

• Each element is selected independently.

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– The population is usually considered infinite if it
involves an ongoing process that makes listing or
counting every element impossible.

– The random number selection procedure cannot be

used for infinite populations.

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Example 1: St. Andrew’s

St. Andrew’s University receives 900 applications

annually from prospective students. The application forms
contain a variety of information including the individual’s
scholastic aptitude test (SAT) score and whether or not the
individual desires on-campus housing.

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Example 1: St. Andrew’s
• Taking a Census of the 900 Applicants
– SAT Scores
• Population Mean
  x i
 990
900
• Population Standard Deviation
   (x i   )2
 80
900
– Applicants Wanting On-Campus Housing
• Population Proportion p
648
 .72
900
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Example 2: St. Andrew’s
• Take a Sample of 30 Applicants Using a Random Number Table
Since the finite population has 900 elements, we will need 3-
digit random numbers to randomly select applicants numbered from 1 to
900.
We will use the last three digits of the 5-digit random numbers
in the third column of a random number table. The numbers we draw
will be the numbers of the applicants we will sample unless
• the random number is greater than 900 or
• the random number has already been used.
We will continue to draw random numbers until we have
selected 30 applicants for our sample.
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Example 2: St. Andrew’s

Source : Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011). Statistics for
Business and Economics. 11. Cengage Learning. USA. ISBN: 978-0538481649.

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Example 2: St. Andrew’s

Source : Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011). Statistics for
Business and Economics. 11. Cengage Learning. USA. ISBN: 978-0538481649.

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Example 2: St. Andrew’s

Source : Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011). Statistics for
Business and Economics. 11. Cengage Learning. USA. ISBN: 978-0538481649.

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 x

Source : Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011). Statistics for
Business and Economics. 11. Cengage Learning. USA. ISBN: 978-0538481649.

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 x

Source : Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011). Statistics for
Business and Economics. 11. Cengage Learning. USA. ISBN: 978-0538481649.
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 x

Source : Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011). Statistics for
Business and Economics. 11. Cengage Learning. USA. ISBN: 978-0538481649.
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 x

Example 3: St. Andrew’s

• Sampling Distribution of x for the SAT Scores

Source : Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011). Statistics for
Business and Economics. 11. Cengage Learning. USA. ISBN: 978-0538481649.

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• Before using a sample statistic as a point estimator,
statisticians check to see whether the sample statistic
has the following properties associated with good point
estimators.

– Unbiasedness

– Efficiency

– Consistency

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• Unbiasedness

If the expected value of the sample statistic is equal

to the population parameter being estimated, the sample
statistic is said to be an unbiased estimator of the
population parameter.

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• Efficiency

Given the choice of two unbiased estimators of the same

population parameter, we would prefer to use the point estimator
with the smaller standard deviation, since it tends to provide
estimates closer to the population parameter.

The point estimator with the smaller standard deviation is

said to have greater relative efficiency than the other.

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• Consistency

A point estimator is consistent if the values of the point

estimator tend to become closer to the population
parameter as the sample size becomes larger.

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A Sampling Distribution is a distribution of all of the
possible values of a statistic for a given size sample
selected from a population.

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Example 4:
Suppose you sample 50 students from your college
regarding their mean GPA. If you obtained many different
samples of 50, you will compute a different mean for each
sample. We are interested in the distribution of all
potential mean GPA we might calculate for any given
sample of 50 students.

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 From N population, we can get samples many times (n1, n2, ....). So that
each sample has a different characteristics.

SAMPLING DISTRIBUTIONS
Population Sample 1 x1
n1 s1
Number of p1
population N Sample 2 x2
n2 s2
p2
Sample 3 x3
n3 s3
p3
Sample….
x.... s... p...
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 SAMPLING DISTRIBUTION OF THE MEAN
Definition :
The distribution of all possible sample means if we selected all
possible samples of a certain size
N
Population means : xi
 
i 1 N

Populations standard deviation

N
xi   2
  2  i 1 N
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Example 5:
There are four assistants as populations. Each assistant is asked
to type the same page of manuscript.
The number error is :
Assistant number of error
1 X1 = 3
2 X2 = 2
3 X3 = 1
4 X4 = 4
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Sample Sample outcome Sample means
N

x
1 3,3 3
2 3,2 2.5
3  2 1 4 i
3 3,1 2 μ  i 1
 2.5
4 3,4 3.5 N 4
5 2,3 2.5
N

x
6 2,2 2
7 2,1 1.5 i
3  2.5    4
8 2,4 3 μX  i 1
  2.5
9 1,3 2 N 16
10 1,2 1.5
11 1,1 1 (3  2.5) 2  ...  (4  2.5) 2
12 1,4 2.5   1.12
13 4,3 3.5 4
14 4,2 3
15 4,1 2.5
16 4,4 4
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Standard error of the mean
 Different samples of the same size from the same population will
yield different sample means.
 A measure of the variability in the mean from sample to sample is
given by the Standard Error of the Mean:
σ
σX 
n
 Note that the standard error of the mean decreases as the sample
size increases.

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Z-value for the sampling distribution of the sample mean:

(X  μX ) ( X  μ)
Z 
σX σ
n
where:
x = sample mean
 = population mean
σ = population standard deviation
n = sample size
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Example 6 :
The standard error mean in example 5

σ 1.12
σX    0.56
n 2

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The Central Limit Theorem :
it states that as the sample size (that is, the number of
values in each sample) gets large enough, the
sampling distribution of the mean is approximately
normally distributed. This is true regardless of the
shape of the distribution of the individual values in
the population.

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Measures of the sampling distribution in The Central Limit

σ
μx  μ σx 
n

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 SAMPLING DISTRIBUTION OF THE PROPORTION
Definition :
The distribution of all possible sample proportion if we selected all possible
samples of a certain size
Sample proportion ( p )
X number of items in the sample having the characteri stic of interest
p 
n sample size
 π = population proportion
 0≤ p≤1
 p has a binomial distribution
(assuming sampling with replacement from a finite population or without
replacement from an infinite population)
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• Standard error for the proportion:
 (1   )
σp 
n

• Z value for the proportion:

p  p 
Z 
σp  (1   )
n

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Example 7:
If the true proportion of voters who support Proposition A
is π = 0.4, what is the probability that a sample of size
200 yields a sample proportion between 0.40 and 0.45?

 In other words, if π = .4 and n = 200, what is

P(.40 ≤ p ≤ .45) ?

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  (1   ) .4(1  .4)
Find σp    .03464
n 200

 .40  .40 .45  .40 

Convert to P(.40  p  .45)  P Z 
standardized  .03464 .03464 
normal:  P(0  Z  1.44)

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 Exercises

1. A population has a mean of 300 and a standard deviation of 30.

A simple random sample of size 100 will be taken and the
sample mean x will be used to estimate the population mean.

a.What is the expected value of x ?

b.What is the standard deviation of x ?

c.Show the sampling distribution of x ?

d.What does the sampling distribution of x show?

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 Exercises

2. The following data are from a simple random sample.

5 8 10 7 10 14

a.What is the point estimate of the population mean?

b.What is the point estimate of the population standard

deviaiton?

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• Anderson, David R., Sweeney, Dennis J., Williams, Thomas A. (2011).
Statistics for Business and Economics. 11. Cengage Learning. USA.
ISBN: 978-0538481649.

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Thank You