3.7 Sampling Distributions of Sample Means
Section Overview
- Gallery 3.7.1 – How Samp. Mean is Formed
- Gallery 3.7.2 – Application of CLT
- Example 3.7.1
- Pop Quiz 3.7.1
The Sampling Distribution of the Sample Mean
Since we’ve already covered the sampling distributions of one and two proportions in the previous section, understanding the sampling distribution of the sample mean shouldn’t be too difficult. A sample mean is a statistic that is derived from taking the mean of the observations of a random sample of size . The sampling distribution of the sample mean is created when we take an infinite amount random samples of a fixed sample size and graph the frequency of a certain value of the sample mean. Gallery 3.7.1 shows the process of how a sampling distribution is derived from the population distribution.
Gallery 3.7.1 How a Sampling Distribution of the Sample Mean is Formed
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First we take an SRS from the population distribution. 4 different SRS’s yield 4 completely different sets of numbers. Open full-size image S0319Frame 2 of 2
Now we take the means of each SRS and place them in the sampling distribution. When many (infinite) SRS’s are taken, their means will completely fill in the graph. Notice how the sampling distribution has less variability than the population distribution. Open full-size image S0320
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| Sample | Complete visible observations | Final visible fragment at clipped edge |
|---|---|---|
| SRS 1 (red) | 15.23, 19.76, 28.42, 35.52, 40.13, 44.95, 47.23, 56.27, 58.36 | 83 |
| SRS 2 (purple) | 26.29, 32.44, 43.72, 48.79, 55.62, 61.76, 64.98, 74.42, 76.23 | 79. |
| SRS 3 (yellow) | 18.88, 24.32, 31.77, 38.09, 42.81, 53.41, 63.62, 64.89, 66.39 | 75 |
| SRS 4 (green) | 10.49, 23.08, 27.36, 29.45, 38.86, 39.33, 47.92, 55.67, 61.21 | 81 |
Now that we’re a bit more familiar with the sampling distribution of the sample mean, let’s talk about some of its features. This time, we saved “Shape” for last because it discusses an important concept in Inferential Statistics.
Center – The mean of the sampling distribution the sample mean is equal to the population mean .
Spread – The standard deviation of the sampling distribution of the sample mean is for an SRS of size . This only applies if the population is at least 10 times as large as the sample, or .
Shape – If the population distribution is Normal, then the sampling distribution of the sample mean is also Normal. Even if the original population distribution is non-Normal, then a rule called the Central Limit Theorem comes into play, where if , then the sampling distribution of the sample mean is approximately Normal. This effect can be shown in Gallery 3.7.2, where increasing the sample size of a sampling distribution brings it closer and closer to approximating a Normal distribution.
Gallery 3.7.2 Application of the Central Limit Theorem
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Sampling distribution of 1 observation. Open full-size image S0321Frame 2 of 4
Sampling distribution of 2 observations. Open full-size image S0322Frame 3 of 4
Sampling distribution of 10 observations. Open full-size image S0323Frame 4 of 4
Sampling distribution of 25 observations. Open full-size image S0324
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The Sampling Distribution of the Difference Between Two Sample Means
Center – The mean of the sampling distribution of the difference between two sample means is equal to the difference between population means .
Spread – The standard deviation of the sampling distribution of difference between two sample means is for an SRS of size . This only applies if the populations are at least 10 times as large as their respective samples, or .
Shape – If both population distributions are Normal, then both sampling distributions are also Normal. If the population distributions are not normal, then the sampling distributions are approximately Normal if both sample sizes exceed 30 due to the Central Limit Theorem.
Example 3.7.1
A vending machine company, Pro Vending, takes an SRS of days in a previous month for one of its vending machines and finds the mean revenue per day to be $26.15 and the standard deviation to be $4.73. It is thought that Pro Vending’s long-term revenue distribution is right-skewed. The company calculates that for its vending machines to be profitable, the revenue made per day must amount to at least $24.50. What is the probability that the average revenue per day meets or exceeds this amount?
Example 3.7.1 — recorded answer block on page 142
All three descriptions of the sampling distribution: Shape, Center, and Spread, will be used to find the probability.
Shape: We know that the sampling distribution of the sample mean closely follows a Normal distribution. This means we can use calculations similar to what we learned in Chapter 3.4, but only if the sample has at least 10 “successes” and 10 “failures,” where a “success” in this context is defined as a non-punctured bed. and , so we are clear to use Normal calculations.
Center: We know that the mean of the sampling distribution of the sample proportion is .
Spread: We know that the standard deviation of the sampling distribution of the sample proportion is
Example 3.7.1 — recorded answer on pages 143–144
All three descriptions of the sampling distribution: Shape, Center, and Spread, will be used to find the probability.
Shape: Although the revenue distribution was said to be right-skewed, the sample size is at least 30, so the sampling distribution of the sample mean will be approximately Normal thanks to the Central Limit Theorem.
Center: We know that the mean of the sampling distribution of the sample mean is .
Spread: We know that the standard deviation of the sampling distribution of the sample mean is .
However, we can only use this calculation if the population is at least 10 times as large as
The revenue distribution was described as long-term, so we can assume that it contains values for at least 300 days. Therefore we have:
Using these numbers, we can find the corresponding z-score for $24.50:
We are looking for the area to the right of on a standard Normal distribution graph. According to the z-table, we get the corresponding probability of 0.0274. This is the area to the left of , however, so we subtract the probability from 1 to get:
This means that there is a 97% chance that the average revenue per day will meet or exceed $24.15.
Pop Quiz 3.7.1
Glossary and deeper reading · 8 refreshers
These editorial refreshers supplement the reading. Definitions and examples are added guidance; original source wording and recorded answers remain in their original context.
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Sampling distribution
A sampling distribution describes how a statistic varies across all possible samples drawn under a specified sampling design and sample size. It is a distribution of statistics rather than of individual observations. For example, the proportions from repeated random samples of 60 students form a sampling distribution.
Read more: Sampling distribution in the captured Statistics reading →
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Mean
The mean is a measure of center often called an average. For a finite data set, the arithmetic mean is the sum of the values divided by their number; for a random variable, the mean is its probability-weighted expected value when that value exists. Means can be pulled toward extreme values and are not generally resistant. For example, the arithmetic mean of 2, 4, and 9 is 5.
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Statistical inference
Statistical inference uses data and a study design to draw conclusions beyond the observed values. Random sampling supports population generalization, while well-conducted random assignment supports treatment-effect conclusions. For example, a random sample can estimate a school-wide preference without surveying every student.
Read more: Statistical inference in the captured Statistics reading →
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Standard deviation
Standard deviation measures spread around the mean using squared deviations and a square root. A sample standard deviation uses the sum of squared deviations divided by one less than the sample size before taking the square root. For example, a larger standard deviation of travel times indicates greater variability, in the original time units.
Read more: Standard deviation in the captured Statistics reading →
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Simple random sample
A simple random sample of a fixed size gives every possible subset of that size the same chance of selection. Giving individuals equal selection chances alone does not establish that the design is an SRS. For example, randomly choosing three identifiers without replacement from ten gives an SRS when every three-identifier set is equally likely.
Read more: Simple random sample in the captured Statistics reading →
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Population
A population is the full set of individuals or measurements a study aims to describe. It must be defined clearly before deciding whether a sample supports generalization. For example, all students enrolled in a particular school this year form a population.
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Sample
A sample is the subset of a population actually studied. How it is selected matters for the conclusions that can be drawn about the population. For example, 60 selected students may be a sample from a school’s full enrollment.
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Central limit theorem
Editorial qualification: The captured n ≥ 30 statement is not a universal guarantee. Under the CLT’s assumptions, the accuracy of a Normal approximation depends on the population and sample size.
For independent identically distributed observations with finite variance, the central limit theorem explains why the standardized sample mean approaches a Normal distribution as sample size increases. There is no universal sample size that makes every population sufficiently close to Normal; skewness and extreme tails affect the approximation. For example, averaging many independent waiting times can produce a less skewed distribution of averages than the original waiting-time distribution.