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STATISTICS FOR BUSINESS
CHAPTER 05
SAMPLING AND SAMPLING DISTRIBUTION

The sampling distribution of a statistic is the probability distribution of all possible values the
statistic may take when computed from random samples of the sample size, drawn from a
specified population.
PART I
SAMPLING DISTRIBUTION OF THE SAMPLE MEAN X

The sampling distribution of X

is the probability distribution of all possible values the random

variable X

may take when a sample of size n is taken from a specified population.

Condition: The Central Limit Theorem must set up.
It means that the sample size n is large enough with 30 or more elements
(n 30)

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1. When the population standard deviation is known (for all n), we use:
z distribution (standard normal distribution)
population mean
standard deviation of sampling distribution S=/ n

2. When the population standard deviation is unknown and sample size n <30,
we use:
t distribution (student distribution)
population mean
standard deviation of sampling distribution S=s/ n
(However, for this instance, since the concept (t d|xtr|hut|un, student distribution) is
unavailable in this chapter (Chapter 5 - Sampling and Sampling Distribution), we can use
z d|xtr|hut|un (standard normal distribution) instead of t d|xtr|hut|un (student
distribution).

3. When the population standard deviation is unknown and sample size n 30,
we use:
z distribution (standard normal distribution)
population mean
standard deviation of sampling distribution S=s/ n

To find the probability with given values, we can use the following the formula
Z =
X

p
o/ n
or Z =
X

p
s/ n


To fine the values with given the probability, we can use the following the formula
x =p z
o
n

or x =p z
S
n


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3

SAMPLE
PROBLEM If the population mean is 1,247, the population variance is 10,000, and the
sample size is 100, what is the probability that X

will be less than 1,230?

SOLUTION p =1,247
o =10,000=100
n =100

P(X

<1,230) =P_
X

p
o/ n
<
1,230 1,247
100/ 100
_ =P(Z <1.7) =0.04457

PART II
SAMPLING DISTRIBUTION OF THE SAMPLE PROPORTION P

The sampling distribution of the sample proportion P
`
is based on the binomial distribution with
parameters n and p, where n is the sample size and p is population proportion.
Condition: np >5 and n(1 p) >5
For all instances, we use z Jistribution (standard normal distribution)
population proportion p
standard deviation S
p
=_
p(1-p)
n

SAMPLE
PROBLEM When sampling is done for the proportion of defective items in a large shipment,
where the population proportion is 0.18 and the sample size is 200, what is the
probability that the sample proportion will be at least 0.20?

SOLUTION p =0.18
n =200
_
np =2000.18=36>5
n(1p) =200(1 0.18) =164>5

P(X

<1,230) =P _
X

p
o/ n
<
1,230 1,247
100/ 100
_ =P(Z <1.7) =0.04457