19.01.2015 Views

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

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

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

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

2.4 to 2.5<br />

2.5 to 2.6<br />

2.6 to 2.7<br />

2.7 to 2.8<br />

2.8 to 2.9<br />

2.9 to 3<br />

3 to 3.1<br />

3.1 to 3.2<br />

3.2 to 3.3<br />

3.3 to 3.4<br />

3.4 to 3.5<br />

3.5 to 3.6<br />

3.6 to 3.7<br />

3.7 to 3.8<br />

3.8 to 3.9<br />

3.9 to 4<br />

4 to 4.1<br />

4.1 to 4.2<br />

4.2 to 4.3<br />

4.3 to 4.4<br />

4.4 to 4.5<br />

4.5 to 4.6<br />

4.6 to 4.7<br />

4.7 to 4.8<br />

4.8 to 4.9<br />

4.9><br />

140<br />

Sampl<strong>in</strong>g Distribution of x-bar<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

Aga<strong>in</strong>, we notice the bell-curved shape and the decreased range of means (about 2.6 to 4.4)!<br />

Let‟s summarize:<br />

Distribution Type<br />

Orig<strong>in</strong>al Die Values<br />

UNIFORM<br />

Sampl<strong>in</strong>g Distribution<br />

Of 10-Roll Means<br />

NORMAL<br />

Sampl<strong>in</strong>g Distribution<br />

Of 20-Roll Means<br />

NORMAL<br />

Sampl<strong>in</strong>g Distribution<br />

Of 30-Roll Means<br />

NORMAL<br />

Distribution Mean Distribution Standard Deviation<br />

3.5 1.7<br />

3.5 0.52<br />

3.5 0.38<br />

3.5 0.32<br />

We can very easily see that the expected value of the sampl<strong>in</strong>g distribution is the same as , the<br />

expected value of the population distribution. That is:<br />

, ̅-<br />

But, what is the relationship of the standard deviations of the means <strong>in</strong> relation to the standard<br />

deviation of the population of die roll value!<br />

This is not so clear. Statisticians, after much research, found that the standard deviation of each<br />

of the sampl<strong>in</strong>g distribution is related to the sample size <strong>in</strong> the follow<strong>in</strong>g way:<br />

<strong>Statistics</strong> <strong>for</strong> <strong>Decision</strong>-<strong>Mak<strong>in</strong>g</strong> <strong>in</strong> Bus<strong>in</strong>ess © Milos Podmanik Page 187

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!