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Stat 2225
Introduction
The Practice of Statistic for Business and Economics is an introductory
text in Statistics at a level that is accessible to students who are taking
statistics as a first or second semester course. The book is divided into two
integral areas of concentration:
This course assumes that you are familiar with the topics in Chapters 1
through 9 on the course outline of the Stat 1181 course. However, we
will do a quick review of some these topics and then follow up with
Notice that the law of large numbers describes the long average of the
means of samples from a population as the samples increase in size. It is
intuitively clear that as more and more observations are taken, the sample
would tend to look more and more like the population. So the mean of a
large sample would be close to the mean of the population.
to overestimate or underestimate .
Sample averages are less variable than individual values. They are
even less variable as the sample size increases.
The CLT justifies why Normal distributions are common models for
observed data. Any variable that is the mean or sum of many small
influences will have approximately a Normal distribution.
Example: Exercise 4.110, page 275.
Solution: (a) We want the probability that the score of a randomly chosen
single student is 21 or higher. This is given by the area under the graph of
the Normal curve to the right of 21.
Since the population of the scores X has a mean =18.6 and standard
x
x 18.6
. So X=21 =>
5.9
21 18.6
the right of 21. The standard score of the scores is Z 0.792 3.03.
x
The area to the right of Z=3.03 is 1-0.9988=0.0012. Thus the required
probability is 0.0012.
Your Turn: Exercise Set 4.4, page 276 #s 4.113, 4.115, 4.117, 4.124
x 123
x 2.2
x
.
n
Then:
For large sample sizes, the sampling distribution of p is
approximately a Normal curve.
The mean of the sampling distribution is p.
The standard deviation of p is
p(1 p )
.
n
(b)
(c)
283
0.372.
760
p (1 p )
,
n
283
0.372,
760
(a)
0.372(1 0.372)
760
0.018.
x z*
,
n
where z* is the point on the Standard Normal curve such that the area to
its right is / 2.
0.8
0.08 for the standard deviation of the sampling
100
distribution of x .
(b)
(c)
(d)
Solution
(a)
4.5
0.92 (kg).
With n=24 and 4.5, x
n
24
(b)
x z*
.
n
= (60.1,63.7).
x
0
z
/ n
(b)