Sampling Distributions (PPT)

Basic Business Statistics (8th Edition)
Chapter 7 - Sampling Distributions

Chapter Topics

• Sampling distribution of the mean
• Sampling distribution of the proportion
• Sampling from finite population

Why Study Sampling Distributions

• Sample statistics are used to estimate population parameters
• Problems: Different samples provide different estimates
• Approach to solution: Theoretical basis is sampling distribution

Sampling Distribution

• Theoretical probability distribution of a sample statistic
• Sample statistic is a random variable
• Results from taking all possible samples of the same size

Population Proportions

• Categorical variable
• Proportion of population that has a characteristic
• Sample proportion provides an estimate
• If two outcomes, X has a binomial distribution

Chapter Summary

• Discussed sampling distribution of the sample mean
• Described sampling distribution of the sample proportion
• Discussed sampling from finite populations 

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