Sampling Methods

and
the Central Limit Theorem

Chapter 8
 Learning Objectives
LO1 Explain why a sample is often the only feasible
way to learn something about a population.
LO2 Describe methods to select a sample.
LO3 Define sampling error.
LO4 Describe the sampling distribution of the sample
mean.
LO5 Explain the central limit theorem.
LO6 Define the standard error of the mean.
LO7 Apply the central limit theorem to find probabilities
of selecting possible sample means from a
specified population.

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 LO1 Explain why a sample is often the only feasible
way to learn something about a population

Why Sample the Population?

1. To contact the whole population would be time
consuming.
2. The cost of studying all the items in a population may be
prohibitive.
3. The physical impossibility of checking all items in the
population.
4. The destructive nature of some tests.
5. The sample results are adequate.

8-3
 LO2 Describe methods to select a sample

Probability Sampling
&
Sampling Methods
What is a Probability Sample?
A probability sample is a sample selected such that each item or
person in the population being studied has a known likelihood of being
included in the sample.

Four Most Commonly Used Probability Sampling Methods

1. Simple Random Sample
2. Systematic Random Sampling
3. Stratified Random Sampling
4. Cluster Sampling

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 LO2
Simple Random Sample and
Systematic Random Sampling
Systematic Random Sampling:
Simple Random Sample: A sample The items or individuals of the
selected so that each item or person population are arranged in some order.
in the population has the same A random starting point is selected and
chance of being included. then every kth member of the
population is selected for the sample.

EXAMPLE: EXAMPLE

A population consists of 845 employees of Nitra A population consists of 845 employees of Nitra Industries.
Industries. A sample of 52 employees is to be selected
from that population. The name of each employee is
A sample of 52 employees is to be selected from that
written on a small slip of paper and deposited all of the
population. First, k is calculated as the population size
slips in a box. After they have been thoroughly mixed,
divided by the sample size. For Nitra Industries, we would
the first selection is made by drawing a slip out of the
select every 16th (845/52) employee list. If k is not a whole
box without looking at it. This process is repeated until
number, then round down. Random sampling is used in the
the sample of 52 employees is chosen.
selection of the first name. Then, select every 16th name
on the list thereafter.

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 LO2
Simple Random Sample:
Using Table of Random Numbers

A population consists of 845 employees of Nitra Industries. A sample of

52 employees is to be selected from that population.
A more convenient method of selecting a random sample is to use the
identification number of each employee and a table of random
numbers such as the one in Appendix B.6.

8-7
 LO2

Stratified Random Sampling

Stratified Random Sampling: A population is first divided into subgroups, called strata, and a
sample is selected from each stratum. Useful when a population can be clearly divided in groups
based on some characteristics

EXAMPLE

Suppose we want to study the advertising

expenditures for the 352 largest
companies in the United States to
determine whether firms with high returns
on equity (a measure of profitability) spent
more of each sales dollar on advertising
than firms with a low return or deficit.

To make sure that the sample is a fair

representation of the 352 companies, the
companies are grouped on percent return
on equity and a sample proportional to the
relative size of the group is randomly
selected.

8-8
 LO2

Cluster Sampling
Cluster Sampling: A population is divided into clusters using naturally occurring geographic or other
boundaries. Then, clusters are randomly selected and a sample is collected by randomly selecting
from each cluster.

EXAMPLE

Suppose you want to determine the

views of residents in Oregon about state
and federal environmental protection
policies.

Cluster sampling can be used by

subdividing the state into small units—
either counties or regions, select at
random say 4 regions, then take
samples of the residents in each of
these regions and interview them. (Note
that this is a combination of cluster
sampling and simple random sampling.)

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 LO4 Describe the sampling distribution of the mean.

Sampling Distribution of
the Sample Mean
The sampling distribution of the sample mean is a probability
distribution consisting of all possible sample means of a given sample
size selected from a population.

EXAMPLE
Tartus Industries has seven production employees (considered the population).
The hourly earnings of each employee are given in the table below.

1. What is the population mean?

2. What is the sampling distribution of the sample mean for samples of size 2?
3. What is the mean of the sampling distribution?
4. What observations can be made about the population and the sampling distribution?

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 LO4
Sampling Distribution of the Sample Mean
EXAMPLE
Tartus Industries has seven production
employees (considered the population).
The hourly earnings of each employee are
given in the table below.
1. What is the population mean?
2. What is the sampling distribution of the
sample mean for samples of size 2?
3. What is the mean of the sampling
distribution?
4. What observations can be made about the
population and the sampling distribution?

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 LO4

Sampling Distribution of the Sample Means -

Example

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 LO5 Explain the central limit theorem.

Central Limit Theorem

CENTRAL LIMIT THEOREM If all samples of a particular size are selected from any
population, the sampling distribution of the sample mean is approximately a normal
distribution. This approximation improves with larger samples.

◼ If the population follows a normal probability

distribution, then for any sample size the
sampling distribution of the sample mean will also
be normal.

◼ If the population distribution is symmetrical (but

not normal), shape of the distribution of the
sample mean will emerge as normal with
samples as small as 10.

◼ If a distribution that is skewed or has thick tails, it

may require samples of 30 or more to observe
the normality feature.

◼ The mean of the sampling distribution equal to μ

and the variance equal to σ2/n.

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 LO5
Using the Sampling
Distribution of the Sample Mean
IF SIGMA IS UNKNOWN, OR IF POPULATION
IF SIGMA IS KNOWN IS NON NORMAL

◼ If a population follows the normal

distribution, the sampling distribution of ⚫ If the population does not follow the normal
the sample mean will also follow the distribution, but the sample is of at least 30
normal distribution.
observations, the sample means will follow
the normal distribution.
◼ If the shape is known to be non-normal,
but the sample contains at least 30
observations, the central limit theorem
guarantees the sampling distribution of ⚫ To determine the probability a sample mean
the mean follows a normal distribution. falls within a particular region, use:

◼ To determine the probability a sample

mean falls within a particular region,
use:

X − X −
z= t=
 n s n
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 LO5
Using the Sampling Distribution of the Sample Mean
(Sigma Known) - Example

EXAMPLE

The Quality Assurance Department for Cola, Inc., maintains records regarding the
amount of cola in its Jumbo bottle. The actual amount of cola in each bottle is critical,
but varies a small amount from one bottle to the next. Cola, Inc., does not wish to
underfill the bottles. On the other hand, it cannot overfill each bottle. Its records
indicate that the amount of cola follows the normal probability distribution. The mean
amount per bottle is 31.2 ounces and the population standard deviation is 0.4 ounces.

At 8 A.M. today the quality technician randomly selected 16 bottles from the filling line.
The mean amount of cola contained in the bottles is 31.38 ounces.

Is this an unlikely result? Is it likely the process is putting too much soda in the
bottles? To put it another way, is the sampling error of 0.18 ounces unusual?

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 LO5
Using the Sampling Distribution of the Sample Mean
(Sigma Known) - Example

Solution: X −  31.38 − 31.20

Step 1: Find the z-values z= = = 1.80
corresponding to the sample mean  n $0.4 16
of 31.38

Step 2: Find the probability of

observing a Z equal to or greater
than 1.80

Conclusion: It is unlikely, less than a 4 percent chance, we could select a sample of 16 observations
from a normal population with a mean of 31.2 ounces and a population standard deviation of 0.4 ounces
and find the sample mean equal to or greater than 31.38 ounces. The process is putting too much cola in
the bottles.
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