SAMPLING DISTRIBUTIONS

A Sampling Distribution is the distribution of a

statistic for all possible samples of a fixed size.

STANDARD DEVIATION OF THE MEAN

  𝜎
𝜎 𝑥
´=
√𝑛 For infinite populations

For finite populations

DISTRIBUTION OF A RANDOM VARIABLE

 
z=

The mean length of shafts produced on a lathe

has historically been 50 inches, with a standard
deviation of 0.12 inch. If a sample of 36 shafts
is taken what is the probability that the sample
mean would be greater than 50.04 inches?
  =50  
z=
=0.12
n=36 =

=
z=2
CONFIDENCE INTERVALS
A confidence interval (CI) is an interval estimate of
a population parameter that also specifies the
likelihood that the interval contains the true
population parameter.

COMMONLY USED CONFIDENCE LEVELS

ARE:
• 90%
• 95%
• 99%
COMPUTING
  A CONFIDENCE INTERVAL WITH A KNOWN POPULATION STANDARD
DEVIATION

A laboratory in a hospital is required to ensure that the temperature in

their sterilizer stays at an average of at least 100˚C. over an extended
period of time, the population standard deviation has been shown to be
stable at =0.5. Find the 95% confidence interval for the population mean
if a sample of 36 readings was taken, and the sample mean was found to
be
  𝜎
𝑥 +¿ 𝑧 ¿
√𝑛
  

 100.3
 

z = 1.96 100.3 0.1633

n = 36 100.1367 to
100.4633
CONFIDENCE Z-VALUE
LEVEL

90% 1.645
95% 1.96
99% 2.58
HYPOTHESIS TESTING
• Hypothesis Testing involves drawing
interferences about two contrasting
propositions relating to the value of a
population parameter.
• One of which is assumed to be true in the
absence of contradictory data (the null
hypothesis), and the other which must be true
if the null hypothesis is rejected (the
alternative hypothesis).
STEPS IN A HYPOTHESIS TEST:
1. Formulate the hypotheses to test.
2. Select a level of significance.
3. Determine a decision rule on which to base a
conclusion.
4. Collect data and calculate a test statistic.
5. Apply the decision rule to the test statistic
and draw a conclusion.
LEVEL OFSIGNIFICANCE
The Level of Significance defines the risk
that we are willing to take in making the
incorrect conclusion that the alternative
hypothesis is true when in fact the null
hypothesis is true.

COMMONLY USED LEVELS OF

SIGNIFICANCE:
• 0.10
• 0.05
• 0.01
P-value or Observed Significance
Level
An alternative approach to comparing a test
statistic to a critical value in hypothesis testing is
to find the probability of obtaining a test statistic
value equal to or more extreme than that
obtained from the sample data when the null
hypothesis is true.