Concept of Sampling Distribution

BASIC DEFINITIONS
1. Universe or Population: An aggregate of items about which we obtain information. It can be finite e.g. number of students in a college etc. It can be infinite e.g. number of hair on the head. 2. Sample: A part of population is called as a sample.

There are two methods to collect statistical data:

1. CENSUS METHOD: Data is collected from each and every unit of the population under investigation i.e. Complete Enumeration is done. 2. SAMPLING METHOD: Data is collected from the sample of items selected from population.

IMPORTANCE OF SAMPLING METHOD

1. 2. 3. 4. 5. Saving of time. Saving of money. Intensive study. Organizational Convenience. More reliable results.

DIFFERENCE BETWEEN CENSUS AND SAMPLE METHOD

S No. 1 SCOPE CENSUS METHOD All items relating to universe are investigated. Expensive SAMPLING METHOD Only few items are inquired. Economical

2 3 4

COST

FIELD OF INVESTIGATON Suitable for limited field. Suitable for large field. HOMOGENEITY Useful where units of population are heterogeneous Each and every unit of universe is necessary, census method is more appropriate. Useful where units of population are homogeneous. When population is infinite or vast this method is more appropriate.

TYPE OF UNIVERSE

SAMPLIN G METHODS PROBABILITY SAMPLING METHODS Multistage random sampling Systematic random sampling Jud gme nt Sam plin g NON PROBABILITY SAMPLING METHODS Q uo ta Sa m pli ng Con veni enc e sam plin g Exte nsiv e sam plin g

Simple Random sampling

Stratified random sampling

Cluster sampling

SAMPLING ERRORS
Faulty selection of the sampling method. Substituting one sample for the sample due to the difficulties in collecting the sample. Faulty demarcation of sampling units.

NON SAMPLING ERRORS

IMPORTANT TERMS PARAMETERS STATISTICS

1. DEFINITION: Any statistical measures 1. DEFINITION: Any statistical measure computed from the population data is computed from sample data is known as known as parameter. statistic.

2. Parameters are denoted by Greek letters

2. Statistics are denoted by Roman letters

Population mean Population standard deviation Population Variance Population proportion

2 P

Sample mean Sample standard deviation Sample Variance Sample proportion

X s s2 p

IMPORTANT TERMS SAMPLING WITH SAMPLING WITHOUT REPLACEMENT REPLACEMENT

Sampling where each unit of population may be chosen more than once is called sampling with replacement. In this case, total number of possible samples each of size n is drawn from a population of size N is Nn. And if each unit can not chosen more than once is called sampling without replacement. In this case, total number of possible samples will be NCn = m (say)

An important property of sampling distribution

Random samples of large size (n > 30) are taken from a population which may or may not be normally distributed or not, then the sampling distribution of the statistic will approach a normal distribution.

Standard error of a statistic

The standard deviation of the sampling distribution of a statistic is known as the standard error of the statistic. In sampling distribution instead of standard deviation for measuring variation, we use the term standard error of mean. The standard error of mean measure the extent to which the sample mean differ from the population mean. Like the standard error of mean, we could have standard error of median, standard deviation, proportion, variance etc.

UTILITY OF STANDARD ERROR

1. Reliability of a Sample: Standard error is inversely proportional to reliability of a sample. 2. Tests of significance: In large sample ( n > 30), if the difference between observed and expected value is greater than 1.96 Standard error., then we reject the hypothesis at 5% and conclude that sample differs widely from the population. But if the difference between the observed and the expected value is greater than 2.58 S.E, then we reject the null hypothesis at 1% and conclude that the sample differs widely from the population.

UTILITY OF STANDARD ERROR

3. To determine the confidence limits of the unknown population mean: The standard error enables us in determining the confidence limits within which a population parameter is expected to lie with a certain degree of confidence. The confidence limits of population mean are given by:
LARGE SAMPLE 95% confidence limits for x 1.96 S.E and x + 1.96 S.E 99% confidence limits for X 2.58 S.E and x + 2.58 S.E SMALL SAMPLE 95% confidence limits for X t.05 S.E and x + t.05 S.E 99% confidence limits for X t.01 S.E and x + t.01 S.E

Sampling distribution of means

PROPERTIES: 1. The mean of the sampling distribution of means is equal to the population mean (). i.e. x = 2. The standard error of the sampling distribution of means is: S.E x = /n (sampling is with replacement) S.E = /n *(N-n)/(N-1)] 3. To find the probability of the sampling distribution of means: Z = X / S.E x

Q1. Consider a population consisting of three values: 2, 5 and 8. Draw all possible sample of size 2 with replacement from the population. Construct sampling distribution of means. Also find the mean and standard error of the distribution.
Solution:

Sample No

Sample Values

Sample mean

Mean = fx/ f
Sample means (x) f fx d=x- d2 fd2

Variance = fd2/ f S.E =

Q2. Suppose a population consist of values 1,2,3,4, and 5. Take all possible sample of size 2 (without replacement) and construct a sampling distribution of mean. Show that mean of sampling distribution of mean is equal to the population mean.

ESTIMATES

POINT ESTIMATES

INTERVAL ESTIMATES