Statistics for Decision- Making in Business - Maricopa Community ...

First off, we notice there is sampling variability. Not every person obtained the same average
outcome from 10 tosses each. This is expected, since the process is a random one.
The distribution of these means is called a sampling distribution.
Sampling Distribution
The distribution of sample statistics (such as ̅) computed from repeated sampling is called a
sampling distribution.
6.1.2 The Central Limit Theorem
20 Means
3.1
3.3
2.4
3.5
2.7
2.9
2.9
3.6
3
4.7
3.6
3.2
3.9
2.8
3.2
3.3
3.9
3.3
3.5
3.1
We do notice that the means tend to gravitate towards 3.5. Some, as expected, deviate from this
value.
Let us now consider a histogram for this sampling distribution of sample means:
Statistics for Decision-Making in Business © Milos Podmanik Page 184