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Slide 1
Shakeel NoumanM.Phil Statistics
Sampling Distribution
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 2Sampling Distributions6.1 The Sampling Distribution of the Sample Mean6.2 The Sampling Distribution of the Sample Proportion
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 3Sampling Distribution of theSample Mean
The sampling distribution of the sample mean is the probability distribution of the population of the sample means obtainable from all possible samples of size n from a population of size N
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 4Example: Sampling Annual % Return
on 6 Stocks #1
• Population of the percent returns from six stocks– In order, the values of % return are:10%, 20%, 30%, 40%, 50%, and 60%
» Label each stock A, B, C, …, F in order of increasing % return
» The mean rate of return is 35% with a standard deviation of 17.078%
–Any one stock of these stocks is as likely to be picked as any other of the six
» Uniform distribution with N = 6» Each stock has a probability of being picked of 1/6 =
0.1667
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 5
Example: Sampling Annual % Return
on 6 Stocks #2 Stock
% Return
Frequency
Relative Frequency
Stock A 10 1 1/6 Stock B 20 1 1/6 Stock C 30 1 1/6 Stock D 40 1 1/6 Stock E 50 1 1/6 Stock F 60 1 1/6 Total 6 1
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 6Example: Sampling Annual % Return
on 6 Stocks #3
• Now, select all possible samples of size n = 2 from this population of stocks of size N = 6– Now select all possible pairs of stocks
• How to select?– Sample randomly– Sample without replacement– Sample without regard to order
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 7Example: Sampling Annual % Return
on 6 Stocks #4
• Result: There are 15 possible samples of size n = 2
• Calculate the sample mean of each and every sample
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 8Example: Sampling Annual % Return
on 6 Stocks #5
Sample Mean Frequency
Relative Frequency
15 1 1/1520 1 1/1525 2 1/1530 2 1/1535 3 1/1540 2 1/1545 2 1/1550 1 1/1555 1 1/15
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 9Observations
• Although the population of N = 6 stock returns has a uniform distribution, …
• … the histogram of n = 15 sample mean returns:1. Seem to be centered over the
sample mean return of 35%, and 2. Appears to be bell-shaped and
less spread out than the histogram of individual returns
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 10General Conclusions
• If the population of individual items is normal, then the population of all sample means is also normal
• Even if the population of individual items is not normal, there are circumstances when the population of all sample means is normal (Central Limit Theorem)
Slide 11General Conclusions Continued
• The mean of all possible sample means equals the population mean– That is, m = mx
• The standard deviation sx of all sample means is less than the standard deviation of the population– That is, sx < s
» Each sample mean averages out the high and the low measurements, and so are closer to m than many of the individual population measurements
Slide 12And the Empirical Rule
• The empirical rule holds for the sampling distribution of the sample mean– 68.26% of all possible sample means are within
(plus or minus) one standard deviation sx of m– 95.44% of all possible observed values of x are
within (plus or minus) two sx of m– 99.73% of all possible observed values of x are
within (plus or minus) three sx of m
Slide 13Properties of the Sampling
Distribution of the Sample Mean #1
• If the population being sampled is normal, then so is the sampling distribution of the sample mean, x
• The mean sx of the sampling distribution of x is
mx = m• That is, the mean of all possible sample means is the same
as the population mean
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 14Properties of the Sampling
Distribution of the Sample Mean #2
• The variance of the sampling distribution of is
- That is, the variance of the sampling distribution of is directly proportional to the variance of the
population, and inversely proportional to the sample size
x
x2xs
nx
22 ss
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 15Properties of the Sampling
Distribution of the Sample Mean #3
• The standard deviation sx of the sampling distribution of x is
- That is, the standard deviation of the sampling distribution of x is directly proportional to the standard deviation of
the population, and inversely proportional to the square root of the
sample size
nx
ss
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 16Notes
• The formulas for s2x and sx hold if the sampled
population is infinite• The formulas hold approximately if the sampled
population is finite but if N is much larger (at least 20 times larger) than the n (N/n ≥ 20)– x is the point estimate of m, and the larger the
sample size n, the more accurate the estimate– Because as n increases, sx decreases as 1/√n
» Additionally, as n increases, the more representative is the sample of the population
• So, to reduce sx, take bigger samples!
Slide 17Reasoning from the Sampling
Distribution
• Recall from Chapter 2 mileage example,x = 31.5531 mpg for a sample of size n=49– With s = 0.7992
• Does this give statistical evidence that the population mean m is greater than 31 mpg– That is, does the sample mean give evidence that m
is at least 31 mpg• Calculate the probability of observing a
sample mean that is greater than or equal to 31.5531 mpg if m = 31 mpg– Want P(x > 31.5531 if m = 31)
Slide 18Reasoning from the Sampling
Distribution Continued
84411430
31553131
55313131 if 553131
.zP..zP
.zP.xP
x
x
s
mm
• Use s as the point estimate for s so that
0.114349
79920
ss
.n
x
• Then
• But z = 4.84 is off the standard normal table• The largest z value in the table is 3.09, which has a right hand
tail area of 0.001
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 19Reasoning from the Sampling
Distribution #3
• z = 4.84 > 3.09, so P(z ≥ 4.84) < 0.001• That is, if m = 31 mpg, then fewer than 1 in 1,000
of all possible samples have a mean at least as large as observed
• Have either of the following explanations:– If m is actually 31 mpg, then very unlucky in
picking this sampleOR
– Not unlucky, but m is not 31 mpg, but is really larger
• Difficult to believe such a small chance would occur, so conclude that there is strong evidence that m does not equal 31 mpg– Also, m is, in fact, actually larger than 31 mpg
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 20Central Limit Theorem
• Now consider sampling a non-normal population• Still have: and
– Exactly correct if infinite population – Approximately correct if population size N finite but much
larger than sample size n» Especially if N ≥ 20 n
• But if population is non-normal, what is the shape of the sampling distribution of the sample mean?– Is it normal, like it is if the population is normal?– Yes, the sampling distribution is approximately normal if the
sample is large enough, even if the population is non-normal» By the “Central Limit Theorem”
mm x nx ss
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 21The Central Limit Theorem #2
• No matter what is the probability distribution that describes the population, if the sample size n is large enough, then the population of all possible sample means is approximately normal with mean and standard deviation
• Further, the larger the sample size n, the closer the sampling distribution of the sample mean is to being normal–In other words, the larger n, the better the
approximation
mm xnx ss
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 22How Large?
• How large is “large enough?”• If the sample size is at least 30, then for most
sampled populations, the sampling distribution of sample means is approximately normal– Here, if n is at least 30, it will be assumed that the
sampling distribution of x is approximately normal» If the population is normal, then the sampling
distribution of x is normal no regardless of the sample size
Slide 23Unbiased Estimates
• A sample statistic is an unbiased point estimate of a population parameter if the mean of all possible values of the sample statistic equals the population parameter
• x is an unbiased estimate of m because mx=m– In general, the sample mean is always an
unbiased estimate of m–The sample median is often an unbiased estimate
of m» But not always
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 24Unbiased Estimates Continued
• The sample variance s2 is an unbiased estimate of s2
– That is why s2 has a divisor of n – 1 and not n• However, s is not an unbiased estimate of s
– Even so, the usual practice is to use s as an estimate of s
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 25Minimum Variance Estimates
• Want the sample statistic to have a small standard deviation–All values of the sample statistic should be
clustered around the population parameter» Then, the statistic from any sample should be close to the
population parameter» Given a choice between unbiased estimates, choose one with
smallest standard deviation» The sample mean and the sample median are both unbiased
estimates of m» The sampling distribution of sample means generally has a
smaller standard deviation than that of sample medians
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 26Finite Populations
• If a finite population of size N is sampled randomly and without replacement, must use the “finite population correction” to calculate the correct standard deviation of the sampling distribution of the sample mean– If N is less than 20 times the sample size, that is,
if N < 20 n–Otherwise
nn xxs
ss
s insteadbut
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 27Finite Populations Continued
• The finite population correction is
• and the standard error is1
NnN
1s
sN
nNn
x
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer
Slide 28Sampling Distribution of the
Sample Proportion
approximately normal, if n is large
pp̂ m has mean has standard deviation
npp
p̂
s1
p̂where p is the population proportion and is a sampled proportion
p̂
The probability distribution of all possible sample proportions is the sampling distribution of the sample
proportionIf a random sample of size n is taken from a
population then the sampling distribution of isp̂
Slide 29
M.Phil (Statistics)
GC University, . (Degree awarded by GC University)
M.Sc (Statistics) GC University, . (Degree awarded by GC University)
Statitical Officer (BS-17) (Economics & Marketing Division)
Livestock Production Research Institute Bahadurnagar (Okara), Livestock & Dairy Development
Department, Govt. of Punjab
Name Shakeel NoumanReligion ChristianDomicile Punjab (Lahore)Contact # 0332-4462527. 0321-9898767E.Mail [email protected] [email protected]
Sampling Distribution By Shakeel Nouman M.Phil Statistics Govt. College University Lahore, Statistical Officer