1-1 Chapter Seven Sampling Methods and Sampling Distributions GOALS When you have completed this chapter, you will be able to: ONE Explain why a sample is the only feasible way to learn about a population. TWO Explain methods for selecting a sample. THREE Define and construct a sampling distribution of the sample means. FOUR Explain the central limit theorem. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 2000 LIND MASON MARCHAL 1-1 Chapter Seven Sampling Methods and Sampling Distributions GOALS When you have completed this chapter, you will be able to: FIVE Calculate confidence intervals for means and proportions. SIX Determine the sample size for attribute and variable sampling. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 2000 LIND MASON MARCHAL 7-3 Why Sample the Population? • The physical impossibility of checking all items in the population. • The cost of studying all the items in a population. • The sample results are usually adequate. • Contacting the whole population would often be time-consuming. • The destructive nature of certain tests. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-4 Probability Sampling • A probability sample is a sample selected in such a way that each item or person in the population being studied has a known likelihood of being included in the sample. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-5 Methods of Probability Sampling • Simple Random Sample: A sample formulated so that each item or person in the population has the same chance of being included. • Systematic Random Sampling: The items or individuals of the population are arranged in some order. A random starting point is selected and then every kth member of the population is selected for the sample. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-6 Methods of Probability Sampling • Stratified Random Sampling: A population is first divided into subgroups, called strata, and a sample is selected from each stratum. • Cluster Sampling: A population is first divided into subgroups (strata), and a sample of the strata is selected. The sample is then taken from these selected strata. • A sampling error is the difference between a sample statistic and its Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-7 Sampling Distribution of the Sample Means • The sampling distribution of the sample means is a probability distribution consisting of all possible sample means of a given sample size selected from a population, and the probability of occurrence associated with each sample mean. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-8 EXAMPLE 1 • The law firm of Hoya and Associates has five partners. At their weekly partners meeting each reported the number of hours they charged clients for their services last week. Partner Hours Dunn 22 Hardy 26 Kiers 30 Malinowski 26 Tillman 22 • If two partners are selected randomly, how many different samples are possible? Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-9 EXAMPLE 1 continued • This is the combination of 5 objects taken 2 at a time. That 5 Cis, 2 (5!) /[( 2!)(3!)] 10 Irwin/McGraw-Hill Partners Total Mean 1,2 48 24 1,3 52 26 1,4 48 24 1,5 44 22 2,3 56 28 2,4 52 26 2,5 48 24 3,4 56 28 3,5 52 26 4,5 48 24 © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-10 EXAMPLE 1 continued • Organize the sample means into a sampling distribution. Irwin/McGraw-Hill Sample Mean Frequency 22 1 Relative Frequency probability 1/10 24 4 4/10 26 3 3/10 28 2 2/10 © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-11 EXAMPLE 1 continued • Compute the mean of the sample means and compare it with the population mean: · The mean of the sample means = [(22)(1) + (24)(4) + (26)(3) + (28)(2)]/10=25.2 · The population mean = (22+26+30+26+22)/5 = 25.2 · Observe that the mean of the sample means is equal to the population mean. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 7-12 Central Limit Theorem • If samples of a particular size are selected from any population, the sampling distribution of the sample means is approximately a normal distribution. • This approximation improves with larger samples. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL