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Section 7.1 Central Limit Theorem

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

2 HAWKES LEARNING SYSTEMS
math courseware specialists Sampling Distributions 7.1 Central Limit Theorem Definition: Sampling distribution for sample means – describes the means of all possible samples of a particular sample size from a specified population.

3 HAWKES LEARNING SYSTEMS
math courseware specialists Sampling Distributions 7.1 Central Limit Theorem Properties of the 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: The sampling distribution will approximate a normal distribution, regardless of the shape of the original distribution. Larger sample sizes will produce a better approximation. The mean of a sampling distribution, , equals the mean of the population. The standard deviation of a sampling distribution, , equals the standard deviation of the population divided by the square root of the sample size. It is also known as Standard Error:

4 The sampling distribution will approximate a normal distribution :
HAWKES LEARNING SYSTEMS math courseware specialists Sampling Distributions 7.1 Central Limit Theorem The sampling distribution will approximate a normal distribution : Property 1 states: The sampling distribution will approximate a normal distribution, regardless of the shape of the original distribution. Larger sample sizes will produce a better approximation.

5 HAWKES LEARNING SYSTEMS
math courseware specialists Sampling Distributions 7.1 Central Limit Theorem Estimate the mean of the population: If the mean of a given sampling distribution is = 85, what is an estimate for the mean of the population? Solution: Property 2 states: “The mean of the sampling distribution equals the mean of the population.”  = 85

6 HAWKES LEARNING SYSTEMS
math courseware specialists Sampling Distributions 7.1 Central Limit Theorem Calculate the standard deviation of the sampling distribution: 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? Solution: 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.”

7 HAWKES LEARNING SYSTEMS
math courseware specialists Sampling Distributions 7.1 Central Limit Theorem Calculate the mean of the sampling distribution: 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? Solution: Property 2 states: “The mean of the sampling distribution equals the mean of the population.” = 217

8 HAWKES LEARNING SYSTEMS
math courseware specialists Sampling Distributions 7.1 Central Limit Theorem Calculate the standard deviation: 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? Solution: 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.”

9 HAWKES LEARNING SYSTEMS
math courseware specialists Sampling Distributions 7.1 Central Limit Theorem Calculate the standard deviation of the sampling distribution: “The standard deviation of a sampling distribution equals the standard deviation of the population divided by the square root of the sample size.”


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