Chapter 7

Sampling Distributions
Chapter Topics
 Sampling distribution of the mean
 Sampling distribution of the proportion
Why Study Sampling Distributions
 Sample statistics are used to estimate population parameters
 e.g.: estimates the population mean
 Problems: Different samples provide different estimates
 Large samples give better estimates; large sample costs more
 How good is the estimate?
 Approach to solution: Theoretical basis is sampling distribution
Key Definitions
 A population (universe) is the collection of things under consideration
 A sample is a portion of the population selected for analysis
 A parameter is a summary measure computed to describe a
characteristic of the population
 A statistic is a summary measure computed to describe a characteristic
of the sample
Population and Sample

Population Sample
Use statistics to
summarize features

Use parameters to
summarize features
Samples
Inference on the population from the sample
Types of Sampling Methods

Non-Probability Probability Samples

Samples
Simple
Random Stratified
Judgement Chunk
Cluster
Quota Systematic
Probability Sampling
 Subjects of the sample are chosen based on known probabilities

Probability Samples

Simple
Systematic Stratified Cluster
Random
Simple Random Samples
 Every individual or item from the frame has an equal chance of being
selected
 Selection may be with replacement or without replacement
 Samples obtained from table of random numbers or computer random
number generators
 Simple to use
 May not be a good representation of the population’s underlying
characteristics

Sampling Distribution
 Theoretical probability distribution of a sample statistic
 Sample statistic is a random variable
 Sample mean, sample proportion
 Results from taking all possible samples of the same size
Properties of Summary Measures

 Standard error (standard deviation) of the sampling distribution σ x− is

less than the standard error of other unbiased estimators
  For sampling with replacement:
 As n increases, σ x
−
decreases

Sampling with Replacement Sampling with Non-replacement

σ2 σ 2
σ = = σ = σ n
1− 
n n n N

Estimate For
Mean σ2 2
= σ 
σ x− = σ x− n
n  1− 
n N

Estimate for
Proportion σ2 p (1 − p ) p(1− p) 
σ2 n
σp = = σp = = 1− 
n n n n  N

Finding Sample Sizes for the Mean

Sampling with Replacement Sampling with Nonreplacement

Estimate For
Mean
z α2 / 2 σ 2 z α2 / 2 σ 2 N
n = n =
ε 2x ε 2x N + z α2 / 2 σ 2

Estimate for
Proportion
z α2 / 2 pq z α2 / 2 pqN
n = n=
ε 2p ε 2p N + z α2 / 2 pq

Require:
1) the confidence level desired
when 1- α = .95, Z = 1.96
2) the sampling error permitted
3) the standard deviation, σ
Sample Size for the Mean
Suppose you worked in Human Resources and planned to survey
employees to find their average medical expenses. You wanted to be 95%
confident that the sample mean is within ±$50. A pilot study showed that σ
was $400. What sample size do you use?

Z 2σ 2 (1.96) 2 (400)2
n= 2
= 2
= 245.86 ≅ 246
Error (50)
Always round up
Sample Size for Proportion

• Define the sampling error, Error = ps - p, then the Sample Size for a
Proportion can be determined by the following equation:
Z 2 p (1 − p)
n=
Error 2
• the value of Z and Error are given
• the value of p can be determined according to historical information
• Assume p = 0.5 conservatively if no historical data are available

Determining Sample Size for Proportion

Out of a population of manufacturing products, 30% are defective. If we
randomly select a sample, what sample size is needed to be within ± 5% with

Z p ( 1 − p ) 1.645 ( 0.3) ( 0.7 )

90% confidence? 2 2

n= 2
=
Error 0.052
= 227.3 ≅ 228
Round Up