SAFE – SBM Peer Mentoring

EC203 ECONOMIC STATISTICS

WEEK 09: Peer Mentoring Activity Sheet

Discussion Forum Session

A. Ice breaker Activity

1. Explain in detail Central limit theorem.

2. State the distribution for following data with reason for your answer.
a) Distribution of sample mean, when a random sample is taken from normally distributed
population with sample size 5.
b) Distribution of sample mean, when a random sample is taken from an unknown
population with sample size 50.
c) Distribution of sample proportion, when a random sample of 25 is taken from an
unknown population and population proportion is assumed to be 0.60.

B. Discussion and Calculations questions

1. An infinite population has a mean of 120 and a standard deviation of 44. A sample of 100
observations is to be selected at random from the population.
a. What is the expected value of the sample mean?
b. What is the standard deviation of the sample mean?
c. What is the shape of the sampling distribution of the sample mean?
d. What does the sampling distribution of the sample mean illustrate?

2. A local newspaper sells an average of 2100 papers per day, with a standard deviation of 500
papers. Consider a sample of 60 days of operation.
a. What is the shape of the sampling distribution of the sample mean number of papers sold
per day? Why?
b. Find the expected value and the standard error of the sample mean.
c. What is the probability that the sample mean will be between 2000 and 2300 papers?
Viber Chat Session

1. Sampling distributions describe the distribution of:

Parameters
A.

Statistics
B.

Neither parameters nor statistics

C.

2. The Central Limit Theorem is important in statistics because

for a large n, it says the population is approximately normal.
A.

For any population, it says the sampling distribution of the sample mean is
B.

approximately normal regardless of the sample size.

for a large n, it says the sampling distribution of the sample mean is approximately
C.

normal, regardless of the shape of the population.

3. If the expected value of a sample statistic is equal to the parameter it is estimating, then
we call the sample statistic
A. unbiased
B. minimum variance
C. biased

4. Which of the following is true about the sampling distribution of a sample mean?
A. The mean of the sampling distribution is always µ.
B. The shape of the sampling distribution is approximately normal.
C. All of the above are true.

5. The standard error of the mean

A. Decreases as the sample size increases
B. Is never larger than the standard deviation of the population.
C. All of the above.

6. Why is the Central Limit Theorem so important to the study of sampling distributions?
A.It allows us to disregard the size of the population we are sampling from.
B.It allows us to disregard the shape of the population when n is large.
C.It allows us to disregard the shape of the sampling distribution when the size of the
population is large.