MATHEMATICS FOR

BUSINESS DECISION

SNEHAMOL SABU
MIANZ INTERNATIONAL COLLEGE
 SAMPLING METHODS
THE STANDARD ERROR OF THE MEAN
Sampling Distribution of the Sample Mean

A probability distribution of all

possible sample means of a given
sample size.
Population mean,
σ𝑿
𝝁= where, N is the number of observations
𝑵

Sample mean,
𝑺𝒖𝒎 𝒐𝒇 𝒂𝒍𝒍 𝒔𝒂𝒎𝒑𝒍𝒆 𝒎𝒆𝒂𝒏𝒔
𝝁𝑿ഥ =
𝑻𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒔𝒂𝒎𝒑𝒍𝒆𝒔
EXAMPLE
Ex.Problem: 9
Page Number: 278
The law firm of
Hoya and Partner Hours
Dunn 22
Associates has five Hardy 26
partners. At their Kiers 30 If two partners are
weekly partners selected randomly,
Malory 26
meeting each how many different
Tillman 22 samples are possible?
reported the number
of hours they billed
clients for their
services last week.
 5 objects A total of 10
taken 2 at 5! different
a time.
C =
5 2 = 10 samples
2!(5 − 2)!
Partners Total Mean
Partner Hours
1,2 48 24
Dunn (1) 22
1,3 52 26
Hardy (2) 26
1,4 48 24
1,5 44 22 Kiers (3) 30
2,3 56 28
2,4 52 26 Malory (4) 26
2,5 48 24
3,4 56 28 Tillman (5) 22
3,5 52 26
4,5 48 24
As a Sample Distribution
Sample Mean Frequency Relative
Frequency
probability
1
22 1
10

24 4 4
10

26 3 3
10

28 2 2
10
 Compute the mean of the sample means.
Compare it with the population mean.
The mean of the sample means
Notice that the
22× 1+ 24×4 + 26×3 + 28×2
 = = 25.2 mean of the
X 10 sample means is
exactly equal to
The population mean the population
mean.
22 + 26 + 30 + 26 + 22
= = 25.2
5
PROBLEM
SOLUTION:
Given, 12,12,14,16
(a) Here we have total .4 𝐶.2 . = 6 𝑠𝑎𝑚𝑝𝑙𝑒𝑠 𝑜𝑓 𝑠𝑖𝑧𝑒 2.
Let 1-12
2-12 Value Total Mean

3-14 1,2 24 12
4-16 1,3 26 13

1,4 28 14

2,3 26 13

2,4 28 14

3,4 30 15
 As a Sample Distribution
Sample Mean Frequency Relative Frequency
probability

12 1 1
6
13 2 2
6
14 2 2
6
15 1 1
6
 The mean of the sample means:

12 × 1 + 13 × 2 + 14 × 2 + 15
𝜇𝑋ത =
6

81
= 6

=13.5

The population mean

12 + 12 + 14 + 16
𝜇=
4
= 13.5
 Central Limit Theorem
For a population with a mean  and a
variance 2 the sampling distribution of the
means of all possible samples of size n
generated from the population will be
approximately normally distributed.
The standard deviation of the distribution of sample means
is called the Standard Error of the Mean or Standard
Error for short. It is represented by the following formula:

Where; 𝝈 is the standard deviation of the

population mean.

n is the number of observations in each

sample.
PROBLEMS:
THANK YOU