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CONTEMPORAR
Y
BUSINESS
STATISTICS
Chapter 7
Sampling and Sampling Distributions
Simple Random
Sampling
Point Estimation
Introduction to Sampling
Distributions
x
Sampling Distributionp of
Sampling Distribution of
Other Sampling Methods
Statistical Inference
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.
Sampling without replacement is the
procedure used most often.
In large sampling projects, computergenerated random numbers are often used
to automate the sample selection process.
4
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.
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.
5
Point Estimation
Sampling Error
990
1,500
Population Standard 2Deviation
( xi )
80
1,500
In-State Applicants
Population Proportion
1,080
p
.72
1,500
9
10
11
Formula Worksheet
A
1
2
3
4
5
6
7
8
9
SAT Score
1008
1025
952
1090
1127
1015
965
1161
B
In-State
Yes
No
Yes
Yes
Yes
No
Yes
No
C
Random
Number
=RAND()
=RAND()
=RAND()
=RAND()
=RAND()
=RAND()
=RAND()
=RAND()
Value Worksheet
A
1
2
3
4
5
6
7
8
9
SAT Score
1008
1025
952
1090
1127
1015
965
1161
B
In-State
Yes
No
Yes
Yes
Yes
No
Yes
No
C
Random
Number
0.38184
0.08037
0.25515
0.82225
0.38700
0.52999
0.27962
0.28245
14
SAT Score
1107
1043
991
1008
1127
982
1163
1008
B
In-State
No
Yes
Yes
No
Yes
Yes
Yes
No
C
Random
Number
0.00027
0.00192
0.00303
0.00481
0.00538
0.00583
0.00649
0.00667
Point Estimates
x as Point Estimator of
xi 49 , 850
x
997
50
50
s as Point Estimator of
2
277 , 097
( xi x )
s
75. 2
49
49
p as Point Estimator of p
p 34 50 . 68
Sampling Distribution of x
x
The sampling distribution of
is the
probability distribution of all possible values of
the sample
x
mean
.
x
Expected Value of
E(x) =
where:
= the population mean
17
Sampling Distribution of x
x
Standard Deviation of
Finite Population
N n
x ( )
n N 1
Infinite Population
x
n
18
Sampling Distribution of x
19
x
Sampling Distribution of
E ( x ) 990
80
11. 3
n
50
20
x
Sampling Distribution of
for the SAT Scores
What is the probability that a simple
random sample of 50 applicants will provide
an estimate of the population mean SAT score
that is within plus or minus 10 of the actual
population mean ?
x
In other words, what is the probability that
will be between 980 and 1000?
21
x
Sampling Distribution of
Area = .3106
Area = .3106
980 9901000
Using the standard normal probability table
with
z = 10/11.3 = .88, we have area = (.3106)(2)
= .6212.
22
p
Expected Value of
E ( p) p
where:
p = the population proportion
23
Sampling Distribution of p
p
Standard Deviation of
Finite Population
p(1 p ) N n
n
N 1
Infinite Population
p(1 p)
n
24
p
Sampling Distribution of
Residents
for In-State
.72(1.72)
.0635
50
E ( p ) p . 72
p
Sampling Distribution of
for In-State
Residents
What is the probability that a simple
random sample of 50 applicants will provide
an estimate of the population proportion of instate residents that is within plus or minus .05
of the actual population proportion?
p
In other words, what is the probability that
will be between .67 and .77?
26
p
Sampling Distribution of
Residents
for In-State
Sampling
distribution
of p
Area = .2852
Area = .2852
p
0.67 0.72 0.77
28
29
30
Cluster Sampling
31
Cluster Sampling
32
Systematic Sampling
Systematic Sampling
34
Convenience Sampling
Judgment Sampling
36
End of Chapter 7
37