Sampling Distribution and the

Central Limit Theorem

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 Distribution of Sample Means

⚫ Distribution of Sample means: A

sampling distribution of sample
means is a distribution obtained
by using the means computed
from random samples of a specific
size taken from a population.

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 Distribution of Sample Means
⚫ Sampling error is the difference
between the sample measure and
the corresponding population
measure due to the fact that the
sample is not a perfect
representation of the population.

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Distribution of
Sample Means - Example

Suppose a professor gave an 8-

point quiz to a small class of four
students. The results of the quiz
were 2, 6, 4, and 8. Assume the four
students constitute the population.
Construct a frequency distribution
for the sample means considering
all samples of size 2 taken with
replacement. © The McGraw-Hill Companies, Inc., 2000
 Properties of the Distribution of
Sample Means
⚫

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 Properties of the Distribution of
Sample Means - Example
⚫

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 The Central Limit Theorem

⚫ As the sample size n increases, the

shape of the distribution of the sample
means taken from a population with
mean  and standard deviation of  will
approach a normal distribution. As
previously shown, this distribution will
have a mean  and standard deviation
 / n .
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The Central Limit Theorem
The central limit theorem can be used
to answer questions about sample means
in the same manner that the normal distribution
can be used to answer questions about
individual values. The only difference is that
a new formula must be used for the z - values.
It is
X −
z= .
/ n
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 The Central Limit Theorem -
Example
A.C. Neilsen reported that children
between the ages of 2 and 5 watch an
average of 25 hours of TV per week.
Assume the variable is normally distributed
and the standard deviation is 3 hours. If 20
children between the ages of 2 and 5 are
randomly selected, find the probability that
the mean of the number of hours they watch
TV is greater than 26.3 hours.
⚫ Ans: 2.62% © The McGraw-Hill Companies, Inc., 2000
 The Central Limit Theorem -
Example
The average age of a vehicle
registered in the United States is 8 years,
or 96 months. Assume the standard
deviation is 16 months. If a random
sample of 36 cars is selected, find the
probability that the mean of their age is
between 90 and 100 months.
⚫ Ans: 92.1%.

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Point Estimation of
Parameters

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 Objectives

⚫ Explain important properties of

point estimators, including bias,
variance, and mean squared error.

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Point Estimation of
Parameters

A point estimate is a specific numerical

value estimate of a parameter. The best
estimate of the population mean  is the
sample mean X .

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Point Estimation of
Parameters

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Point Estimation of
Parameters

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 Properties of Point
Estimators
⚫ The bias of a point estimator is defined as
the difference between the expected value
of the estimator and the value of the
parameter being estimated.

⚫ Also, the closer the expected value of a

parameter is to the value of the parameter
being measured, the lesser the bias is.

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Properties of Point
Estimators
⚫ The standard error of an estimator is its
approximated standard deviation. The
standard error is a statistical term that
measures the accuracy with which the
sample distribution represents a
population.
⚫ The standard error for the sample mean
is
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 Properties of Point
Estimators
⚫ An article in the Journal of Heat Transfer (Trans. ASME,
Sec. C, 96, 1974, p. 59) described a new method of
measuring the thermal conductivity of Armco iron.
Using a temperature of 100°F and a power input of 550
watts, the following 10 measurements of thermal
conductivity (in Btu/hr-ft-F) were obtained:
41.60, 41.48, 42.34, 41.95, 41.86,
42.18, 41.72, 42.26, 41.81, 42.04
⚫ Find a point estimate of the mean.
⚫ Find the standard error of the sample mean then
interpret the result.

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Answers: 41.924, 0.0898
 Properties of Point
Estimators
⚫ In statistics, the mean squared error (MSE)
or mean squared deviation (MSD) of
an estimator (of a procedure for estimating
an unobserved quantity) measures
the average of the squares of the errors—
that is, the average squared difference
between the estimated values and the
actual value.

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Properties of Point
Estimators
⚫ The mean squared error of an estimator
is also equal to the variance of the
estimator plus the squared bias. If the
estimator is an unbiased estimator, the
mean squared error is equal to the
variance of the estimator.

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 Properties of Point
Estimators
⚫ A computer software package was used
to calculate some numerical summaries
of a sample of data. The results are
displayed here:
Variable n Sample MSE
SD
x 20 1.816 50.184 0.03

⚫ Fill in the missing quantities.

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SW#8: (1/2 crosswise-by pair)
1. A recent study of the lifetimes of cell phones found
the average is 24.3 months. The standard deviation is
2.6 months. If a company provides its 33 employees
with a cell phone, find the probability that the mean
lifetime of these phones will not be greater than 23.8
months. Assume cell phone life is a normally
distributed variable.
2. Data on oxide thickness of semiconductors are as
follows: 425, 431, 416, 419, 421, 436, 418, 410, 431, 433,
423, 426, 410, 435, 436, 428, 411, 426, 409, 437, 422,
428, 413, 416.
(a) Calculate a point estimate of the mean oxide
thickness for all wafers in the population.
(b) Calculate a point estimate of the standard
deviation(i.e. the sample SD) of oxide thickness for all
wafers in the population.
(c) Calculate the standard error of© The
the point estimate of
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