section 7.1 central limit theorem hawkes learning systems math courseware specialists copyright ©...

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Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All rights reserved.

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Page 1: Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All

Section 7.1

Central Limit Theorem

HAWKES LEARNING SYSTEMS

math courseware specialists

Copyright © 2008 by Hawkes Learning

Systems/Quant Systems, Inc.

All rights reserved.

Page 2: Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All

• Sampling distribution for sample means – describes the means of all possible samples of a particular sample size from a specified population.

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Definition:

Sampling Distributions

7.1 Central Limit Theorem

Page 3: Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All

HAWKES LEARNING SYSTEMS

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Properties of the Central Limit Theorem:

Sampling Distributions

7.1 Central Limit Theorem

For any given population with mean, , and standard deviation, , a sampling distribution of the sample mean, with sample sizes of at least 30, will have the following three characteristics:

1. The sampling distribution will approximate a normal distribution, regardless of the shape of the original distribution. Larger sample sizes will produce a better approximation.

2. The mean of a sampling distribution, , equals the mean of the population.

3. The standard deviation of a sampling distribution, , equals the standard deviation of the population divided by the square root of the sample size.

Page 4: Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All

If the mean of a given sampling distribution is 85, what is an estimate for the mean of the population?

Estimate the mean of the population:

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Property 2 states:

“The mean of the sampling distribution equals the mean of the population.”

85

Solution:

Sampling Distributions

7.1 Central Limit Theorem

Page 5: Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All

If the standard deviation of a given population distribution is 9, and a sampling distribution is created from the population distribution with sample sizes of n 100, what is the standard deviation of the sampling distribution?

Calculate the standard deviation of the sampling distribution:

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Property 3 states:

“The standard deviation of a sampling distribution equals the

standard deviation of the population divided by the square

root of the sample size.”

Solution:

Sampling Distributions

7.1 Central Limit Theorem

Page 6: Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All

An internet source shows that the average one-way fare for business travel is $217, the lowest in five years. If 215 samples of size 45 are collected from across the U.S., what would you expect the average of the sampling distribution to be?

Calculate the mean of the sampling distribution:

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Solution:

Sampling Distributions

7.1 Central Limit Theorem

Property 2 states:

“The mean of the sampling distribution equals the mean

of the population.”

217

Page 7: Section 7.1 Central Limit Theorem HAWKES LEARNING SYSTEMS math courseware specialists Copyright © 2008 by Hawkes Learning Systems/Quant Systems, Inc. All

A study of elementary school students reports that children begin reading at age 5.7 years on average, with a standard deviation of 1.1 years. If a sampling distribution is created using samples of size 55, what would be the standard deviation of the sampling distribution?

Calculate the standard deviation:

HAWKES LEARNING SYSTEMS

math courseware specialists

Property 3 states:

“The standard deviation of a sampling distribution equals the

standard deviation of the population divided by the square

root of the sample size.”

Solution:

Sampling Distributions

7.1 Central Limit Theorem