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Normal Distribution
The next 4 questions are based on the following data:
Question 1
What is the probability that the firm's sales will be less than
$3.0 million?
a) 0.9522
b) 0.0133
c) 0.0000
d) 0.8599
e) None of the above
A firm's marketing manager believes that total sales for next
year can be represented by a normal distribution, with a mean
of $2.5 million and a standard deviation of $300,000. The firm
has fixed costs of $1.8 million.
Question 2
What is the probability that the firm will have sufficient sales to cover fixed
costs?
a) 0.9902
b) 0.0098
c) 0.2743
d) 0.1306
Question 3
When selecting a sample, researcher must be careful that the sample is a fair
Representative of the population.
SAMPLING DISTRIBUTION of the Sample Mean
Sampling distribution: the probability distribution of a statistic is
called its sampling distribution
Sample 1 Sample 2
Sample mean =n 1 Sample mean =n 2
Sample mean = 1 Sample mean = 2
Sample Std dev= s1 Sample Std dev= s2
Sample 3
Sample mean =n 3
Draw several sample Sample mean = 3
Of the same size from Sample Std dev= s3
The population
Suppose that we draw all possible samples of size n=2 from a given population.
To arrive at the sampling distribution of the sample mean,
ALL POSSIBLE SAMPLES of 2 were selected without replacement from the
population.
7!
There are 21 possible: = = 21
2! 72 !
Select samples of 2 employees without replacement from the population. There are 21 possible samples
Sample Assistant Hourly Earnings ($) Sample Mean, X
1 Joe,Sam 9 9 9
2 Joe,Sue 9 10 9.50
3 Joe,Bob 9 10 9.50
4 Joe,Jan 9 9 9
5 Joe,Are 9 10 9.50
6 Joe, Ted 9 11 10.00
7 Sam, Sue 9 10 9.50
8 Sam, Bob 9 10 9.50
9 Sam, Jan 9 9 9
10 Sam, Art 9 10 9.50
11 Sam, Ted 9 11 10.00
12 Sue, Bob 10 10 10
13 Sue, Jan 10 9 9.50
14 Sue, Art 10 10 10
15 Sue, Ted 10 11 10.50
16 Bob, Jan 10 9 9.50
17 Bob, Art 10 10 10
18 Bob, Ted 10 11 10.50
19 Jan, Art 9 10 9.50
20 Jan,Ted 9 11 10.00
21 Art, Ted 10 11 10.50
Mean of the distribution of X
The mean of X
9+10+9+10+9+11+10
= =$9.71
7
Conclusion: =
Standard error of mean
Shape of the distribution of X
Sampling Distribution of Sample Means
Given a population with a mean of and a standard deviation of ,
the sampling distribution of the mean has the following:
=
X denotes average height,
average weight, average income,
etc.
X
= This mean has a subscribe X-bar to denote that it is from the
distribution of X-bar (X) . X-bar stands for sample mean
Distribution of X
X
Distribution of X (Average)
X denotes average height,
average weight, average income,
etc.
X
Test your understanding
The standard deviation of the sampling
distribution of the mean is:
a) The standard error
b) Dont know
c) 1
d) The standard error times the sample size
e) Approximately 68%
Test your understanding
The population mean of life insurance per household is $110,000
with standard deviation of $40,000. The distribution is positively
skewed.
What is the mean of the distribution of sample mean ?
a) $110,000
b) Cannot be determined
c) $40,000
d) None of the above
Test your understanding
The population mean of life insurance per household is $110,000
with standard deviation of $40,000. The distribution is positively
skewed.
With a random sample of 50 households, what is the standard
error of the mean ?
a) 5656.85
b) Cannot be determined
c) 40,000
d) 800
e) None of the above
Test your understanding
The population mean of life insurance per household is $110,000 with
standard deviation of $40,000. The distribution is positively skewed.
Suppose that you selected 50 samples of households, what is the
expected shape of the distribution of the sample mean?
a) 0.3618
b) 0.4801
c) 0.5
d) None of the above
CLT
The central limit theorem states that the
sampling distribution of any statistic will be
normal or nearly normal, if the sample size is
large enough.
How large is "large enough"? As a rough rule of
thumb, many statisticians say that a sample size
of 30 is large enough. If you know something
about the shape of the sample distribution, you
can refine that rule. The sample size is large
enough if any of the following conditions apply.
See Figure 8.5
Question 1
What is the probability that a student will take from 50 to
60 minutes to get to college?
a) 0.2475
b) 0.0579
c) 0.5467
d) 0.0833
e) None of the above
The next 3 questions are based on the following data:
Commuting times for students at an urban college have
been found to be normally distributed with a mean of
50.0 minutes and a standard deviation of 15.0 minutes.
Question 2
Suppose a sample of 25 students is selected. What is the
probability that their average commuting time will be
between 45 and 55 minutes?
a) 0.9044
b) 0.2611
c) 0.0624
d) 0.8503
e) None of the above
The next 3 questions are based on the following data:
Commuting times for students at an urban college have been
found to be normally distributed with a mean of 50.0 minutes
and a standard deviation of 15.0 minutes.
Question 3
Question 1.
Question 2
What is the probability that an orange will have less than 175
ml. of juice?
a) 0.7580
b) 0.2419
c) 0.6630
d) 0.7379
e) None of the above
The next 5 questions are based on the following data:
An orange juice producer buys all their oranges from one
particular orchard. The amount of juice from the oranges is
approximately normally distributed with a mean of 147.0 ml.
and a standard deviation of 40.0 ml.
Question 3.
Question 4.
Question 5.
What is the probability that eight oranges will provide enough
juice to fill a 1 litre container?
a) 0.3775
b) 0.7580
c) 188.5 ml
d) 88.00%
e) 0.9401