Presented by Dr Sarmistha Das

 The annual earnings of the employees of a cement

factory is normally distributed with mean of Rs
25,000and SD of Rs 3000. if the HR manager draws a
random sample of size 50, what is the probability that
their average earnings will be more than Rs26,000?
 In a Big bazaar, the mean expenditure per customer
is Rs 1850 with a SD of Rs 750. If a random sample of
100 customers is selected, what is the probability that
the, sample average expenditure per customer for
this sample is more than Rs 2000.
 Out of total production of razor blades in a day, 15%
are found defective. What is the probability of
randomly selecting 90 razor blades and finding 10 or
less defective.
 By the year 2014-15, the telephone
instrument industry is estimated to grow by
106.2 millions units as compared to 1993-94
when the total market size was only 3 million
units. Bharti Teletech, BPL Telecom, Tata
Telecom are some of the major players in the
market. Bharti Teletech has a market share of
24%. If 200 purchasers of telephone
instruments are randomly selected, what is
the probability that 55 are or more are Bharti
Teletech customers?
 HR manager has chosen 10 samples each consists
of 50 employees
 We can compute sample statistic mean(θ) for each

sample.
 Θ may be different for different sample.
 A probability distribution of all possible means of

the samples is a distribution of the sample

means----- Sampling Distribution of the mean.
 SD of the sample mean of the sampling
distribution
 STANDARD ERROR
 The standard deviation of the distribution of
a sample statistics is known as the Standard
Error of the statistics.
 Indicates the accuracy we are likely to get if
we use a sample statistic to estimate a
population parameter.
SD of the distribution of SE of mean
sample means

SD of the distribution of SE of median

sample median

SD of the distribution of SE of proportion

sample proportion
 Indicates the accuracy we are likely to get if
we use a sample statistic to estimate a
population parameter.
 A lower value of standard error-----
 Value of SE when sample size increases---
 What will be the shape of the sampling

distribution of sample mean with differently

shaped population distribution?

 Central Limit Theorem

 The mean of the sampling distribution of the mean
will equal the population mean-
regardless of the sample size, even if the
population is not normal.

 As the sample size increases, the sampling

distribution of the mean will approach normality,
regardless of the shape of the population
distribution.
 n≥30
 Sampling distribution of the sampling mean

follows a normal distribution.

 Z formula will be x x
Z
x
 Z= (sample mean- population
mean)/sample SD (SE)
 SE=Population SD/ square root of the

sample size.
 Standard Error = δ/√n
 Z=(X-μ) / δ/√n
 The annual earnings of the employees of a cement
factory is normally distributed with mean of Rs
25,000and SD of Rs 3000. if the HR manager
draws a random sample of size 50, what is the
probability that their average earnings will be
more than Rs26,000?
 Population mean-25000,
 Population SD- 3000,
 n= 50,
 Sample mean= 26000.
 Infinite population Finite population
size----- size----
 N n
n N 1

Standard Error =

Standard Error =
δ/√n
 In a Big bazaar, the mean expenditure per
customer is Rs 1850 with a SD of Rs 750. If a
random sample of 100 customers is selected, what
is the probability that the, sample average
expenditure per customer for this sample is more
than Rs 2000.
 Out of total production of razor blades in a day,

15% are found defective. What is the probability

of randomly selecting 90 razor blades and finding
10 or less defective.
 Data items– time, weight, height, income
 Appropriate statistic– Sample mean
 Data item– countable items- people who own

car,
 Appropriate Statistic– sample proportion.
 Researchers use sampling proportion to make

statistical inference about population

proportion.
 Out of total production of razor blades in a day,
15% are found defective. What is the probability
of randomly selecting 90 razor blades and finding
10 or less defective.

 Sample proportion= x/n= no. of item in a

sample possessing the given characteristics/ no of
items in the sample.
 SD of Sample proportion= √(pq/n)
 Z= Sample proportion- population

proportion)/ √(pq/n)
 Stansdard error
 Sampling distribution of sample mean for

infinite population.
 Sampling distribution of sample mean for

finite population
 Sampling distribution for sample proportion