AP STATS: Warm-Up Complete the “quiz” 9.1/9.2 with a partner. Don’t use notes or your textbook. If you want to have your quiz graded, hand it in, and it will count as a 25 point quiz. If not, you can choose to just keep it. “I shall persevere until I find something that is certain - or, at least until I find for certain that nothing is certain.” Rene Descartes (1596 - 1650) Agenda Thursday: Sample Means Friday: Review Monday: Unit Test – Chapter 9 OVERVIEW: This section contains one of the most important of all statistical theorems, the Central Limit Theorem of Statistics. It also emphasizes that the Greek letters m and s are conventionally used for the population parameters mean and standard deviation, and that x(bar) and s conventionally represent the mean and standard deviation for samples. Sample Means Today we will talk about sample means. Give me an example of a sample mean we might be interested in finding. Give me an example of a sample proportion we might be interested in finding. Sample Means: Stock Diversification Normal Distribution Recall that the sampling distribution of p-hat is approximately normal under certain conditions. The same is true for x-bar. When the population is normal, the sampling distribution is also normal. However, the central limit theorem tells us even more… namely that even when the population distribution is NOT normal, the sampling distribution will become normal when n is sufficiently large. This is true of any size n. i.e. the mean of x-bar ALWAYS equals μ. Use the standard deviation formula when the population is at least ten times the size of the sample. Example What is the probability that a randomly selected woman is 66.5 inches or taller? What is the probability that the mean height of an SRS of 10 randomly selected women is 66.5 inches or taller? The Central Limit Theorem Consider an SRS of size n from any population with mean μ and standard deviation σ. When n is large, the sampling distribution of x-bar has the following properties: ◦ It is approximately normal. ◦ The mean of the distribution is x-bar ( = μ). s ◦ The standard deviation of the distribution is s. n A Few Notes on the CLT 1.) When the population has a normal distribution – shape of the sampling distribution is normal, regardless of the sample size. 2.) Any population shape, for small n – the shape of the sampling distribution is similar to the shape of the population distribution. 3.) Any population shape, large n – shape of the sampling distribution is close to normal (CLT). **This is the CLT!! Here is an example illustrating (b) and (c) of the Central Limit Theorem. Consider the population P = {2,4,6}. For this population, m = 4 and s = sqrt[((2-4)2 + (4-4)2 + (6-4)2)/3] = 1.632993162 Now, consider all possible samples of size 2 (with replacement). There would be 32 = 9 such samples. Sample 2,2 2,4 2,6 4,2 4,4 4,6 6,2 6,4 6,6 Sample Mean 2 3 4 3 4 5 4 5 6 The collection of sample means is M = {2,3,3,4,4,4,5,5,6}. The mean of M = 4 = m, illustrating (b) of the Central Limit Theorem. The standard deviation of M = 1.154700538 = s/sqrt(2) = 1.632993162/Sqrt(2), illustrating (c) of the Central Limit Theorem. Example: A tire manufacturer advertised that a new brand of tires had a mean life of 40,000 miles with a standard deviation of 2,000 miles. A research team examined a random sample of 100 of these tires and determined that the tires in the sample had a mean life of 39,000 miles. If the mean life is indeed 40,000 miles, how likely is it that a random sample of 100 would have a mean life of 39,000 miles? Considering the set W of all sample means of size 100, the mean of W is 40,000, and the standard deviation of W is 2000/sqrt(100) = 200. The probability of getting a sample with a mean of 39,000 or less is normalcdf(-1E99, 39000, 40000, 200) = .000000287. In other words, it would be very unlikely to get a sample of 100 with a mean of 39,000 miles if the manufacturers claim is true. Summarizing what we learned HW #4 Read section 9.3 Complete exercises 9.41, 9.42, 9.45, 9.46