Probability Distributions in

Statistics
30-08-2017
 Standard error of the mean
Standard deviation of the sampling distribution of the sample mean
There is less dispersion in the sampling distribution of the sample mean
than in the population (each value is an average)!!

i.e. SD of the sampling distribution of the sample mean

= population standard deviation
n = sample size
When we increase n, the standard deviation of the sample will
decrease.
Z-value
To determine the probability a sample mean falls within a particular
region, use: Sampling error

Std. Error of the

sampling distribution
Were interested in the distribution of of the sample mean
X-bar, the sample mean, instead of X
CLT
If all samples of a particular size are selected from any population, the sampling
distribution of the sample mean X-bar is approximately a normal distribution. This
approximation improves with larger samples.

In selecting simple random samples of size n from a population, the sampling

distribution of the sample mean X-bar can be approximated by a normal distribution as
the sample becomes large.
If population distribution is symmetrical but not normal, the distribution will converge towards
normal when n > 10.
Skewed or thick-tailed distributions converge toward normal when n > 30.
Heavily skewed distribution converge when n > 50.

Use: We can reason about the sampling distribution of X-bar with absolutely no
information about the shape of the original distribution from which the sample is taken.
Problem 1
Historical data for a breakfast cereal manufacturer shows the weight
for a product as:
= 140 gm
= 4 gm
If the sample produced during the morning shift of
production shows:
X-bar = 141.4 gm
n = 30
Is this sampling error reasonable, or do we need to shut
down the filling operations?
Problem 2
Suppose the average selling price of 1 litre of a particular soft drink in
the USA is $3.13.
Further assume that the distribution is positively skewed, with a
standard deviation of $0.98.
What is the probability of selecting a sample of 35 retail stores and
finding the sample average within $0.33?
Problem 3

The Orange Trucking Company claims that:

The mean weight of their delivery trucks when they are fully loaded is 6,000
lbs;
And the standard deviation is 150 lbs.
Assume that the population follows the normal distribution, 40 trucks
are randomly selected and weighed.
Within what limits will 95% of the sample means occur?
Problem 4

Suppose that during any hour in a large departmental store, the

average number of shoppers is 448;
The standard deviation is 21 shoppers;
What is the probability that a random sample of 49 different shopping
hours will yield a sample mean between 441 and 446 shoppers?
Problem 5
A particular automobile costs an average of $21,755 in the Pacific
Northwest. The standard deviation of prices is $650. Suppose a
random sample of 30 dealerships in Washington and Oregon is taken,
and their managers are asked what they charge for this automobile.
What is the probability of getting a sample average cost less than
$21,500?
Assume that only 120 dealerships in the entire Pacific Northwest sell
this automobile.