Statistics Assignment
According to Figure 1, the 1000 values of meanX of sampling distribution are distributed
normally around the true value of the parameter. The true value is the mean of daily closing prices
(prc), which is 28.20585. In this simulation, the average of sample means calculated by sampling
experiment is 28.20517. Thus, in this case, the percentage difference between the true population
mean and the average of sample means is (28.20585-28.20517)/28.20585*100% = 0.0024%,
which is very small. Moreover, this sampling distribution is almost bell-shaped.
0
.5
Density
1
1.5
Figure 1. Distribution of Sample Means for Daily Closing Price (PRC)
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32.5
33
r(meanX)
1
33.5
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