Quantitative Techniques by Amit Ramawat

Module 6
1. 2. 3. 4. 5.
Normal distribution: Importance & Properties Sampling : Random & Non-random Sampling Sampling distribution: Central limit theorem Sampling Distribution of Mean & Proportion Sampling Distribution of the difference of two means & two proportions.
1. Normal distribution
The normal distribution was discovered by De Moivre as the limiting case of binomial model in 1733. It was known to Laplace no later than 1774. But through a historical error it has been credited to Gauss, who first made reference to it in 1809.
Properties
The normal distribution is a continuous distribution plays a very important & pivotal role in statistical theory & practice. The experimental results, very often seem to follow the normal distribution or the bell shaped curve. The normal curve is symmetrical & is defined by its mean() & its standard deviation ( ).
Characteristics of the normal curve

All normal curves are symmetrical about the mean. The height of the normal curve is at its maximum at the mean value. The height of the curve declines as we go in either direction from the mean, but never touches the base, so that the tails of the curve on both the sides of the mean extend indefinitely.
Q.1
The average daily sales of 500 branch offices was Rs. 150 thousand & the standard deviation Rs. 15 thousand. Assuming the distribution to be normal, indicate how many branches have sales between: Rs. 120 thousand & Rs. 145 thousand. Rs. 140 thousand & Rs. 165 thousand.
Q.2 (2008 question paper)
In a normal distribution, 31% of the items are under 45 & 8% are over 64. Find the mean & standard deviation of the distribution.
Q.3
The income of a group of 10,000 persons was found to be normally distributed with mean Rs. 1750 p.m. & standard deviation Rs. 50. i. Show that in this group 95% had income exceeding Rs. 1668 & only 5% had income exceeding Rs. 1832. ii. What was the lowest income among the richest 100?
Q.4
A workshop produces 2000 units per day. The average weight of units is 130 kg with a standard deviation of 10 kg. Assuming normal distribution, how many units are expected to weigh less than 142 kg?
Q.5
Assume that the test scores from a college admissions test are normally distributed with a mean of 450 & a standard deviation of 100. a. What percentage of the people taking the test score between 400 & 500? b. Suppose someone received a score of 630. What percentage of the people taking the test score better? What percentage score worse? c. If a particular university will not admit anyone scoring below 480, what percentage of the persons taking the test would be acceptable to the university?
Sampling
In the sampling method, instead of every unit of the population only a part of the population is studied & the conclusions are drawn on that basis for the entire population. Example 1: a housewife examines only 2or 3 grains of boiling rice to know, whether the pot is ready or not. Example 2: a doctor examines a few drops of the blood & draws conclusion about the blood constitution of the whole body.
Purpose of sampling
A sample is not studied for its own sake. The basic objective of its study is to draw inference about the population. In other words, sampling is only a tool which helps to know the characteristics of the universe or population by examining a small part of it. The values obtained from the study of sample, such as the average & variance, are known as statistic. On the other hand, such values for the population are called parameters.
Random sampling methods

Simple random sampling It refers to the sampling technique in which each & every item of the population is given an equal chance of being included in the sample. The selection is thus free from personal bias because the investigator does not exercise his preference in the choice of items. Its also known as Representative sampling.
I.
Methods of obtaining a Simple Random Sample

Lottery method: All items of the population are numbered or named on separate slips of paper of identical size, color & shape. These slips are then folded & mixed up in a container or a drum. A blindfold selection is then made of the number of slips required to constitute desired sample.
a.
Table of Random numbers: A number of random tables are available such as: i. Tippetts table of random numbers. ii. Fisher & Yates numbers. iii. Kendall & Babington Smith numbers.
b.
II. Stratified Sampling The process of stratification requires that the population may be divided into classes called strata. Then a sample may be taken from each group by simple random method & the resulting sample is called a stratified sampling.
III. Systematic Sampling The method is to select every kth item from the list where k refers to the sampling interval. The starting point between the first & the kth item is selected at random.
IV. Multi-Stage Sampling As the name implies, this method refers to a sampling procedure which is carried out in several stages. At first, the first stage units are sampled by some suitable method such as random sampling. Then, a sample of second stage units are selected from each of the selected first stage units again by some suitable method
Non-Random Sampling Methods

Judgment Sampling In this method of sampling, the choice of sample items depends exclusively on the judgment of the investigator. For example: if a sample of 10 students is to be selected from a class of sixty for analyzing the spending habits of students, the investigator would select 10 students who, in his opinion, represent the class.
I.
II. Quota Sampling It is a type of judgment sampling. Quotas are set up according to given criteria, but within the quotas the selection of sample items depends on personal judgment. For example: in a radio listening survey, the interviewers may be told to interview 500 people living in a certain area & that out of every 100 persons interviewed 60 are to be housewives, 25 farmers & 15 children under the age of 15. Within these quotas, the interviewer is free to select the people interviewed.
III. Convenience sampling The method of convenience sampling is also called the chunk. A chunk is a fraction of one population taken for investigation because of its covenient availability. Thus, a chunk is selected neither by probability nor by judgment but by convenience.
Sampling Distributions
Much of the information used in the business & industry is gathered by means of sampling. It has been pointed out earlier that not only it is often impossible either physically or because of limitations imposed by time to take a census of all the items in the population.
Central Limit Theorem
According to this theorem, if we select a large number of simple random samples, say, from any population distribution & determine the mean of each sample, the distribution of theses sample means will tend to be described by the normal probability distribution.
Q1. Sample Distribution of the Mean
The time between 2 arrivals in a queuing model is normally distributed with a mean 2 minutes & standard deviation 0.25 minute. If a random sample of size 36 is drawn, what is the probability that the sample mean will be greater than 2.1 minutes?
Q2. Sampling distribution of the difference of the 2Means
Strength of the wire produced by company A has a mean of 4500 kg & a standard deviation of 200 kg. Company B has a mean of 4000 kg & a standard deviation of 300 kg. If 50 wires of company A & 100 wires of Company B are selected at random & tested for strength, what is the probability that the sample mean of strength of A will be at least 600 kg more than that of B?
Q.3 Sampling distribution of Proportions
In a quality department of manufacturing paints, at the time of dispatch of decorative paints, 30% of the containers are found to be defective. If a random sample of 500 is drawn with replacement from the population, what is the probability that the sample proportion will be less than or equal to 25% defective?
Q.4 Sampling distributions of the difference of two proportions

10% of machines produced by company A are defective & 5% of those produced by company B are defective. A random sample of 250 machines is taken from company A & a random sample of 300 machines is taken from company B. What is the probability that the difference in sample proportion is less than or equal to 0.02?

Quantitative Techniques by Amit Ramawat

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Module 6

Characteristics of the normal curve

Q.2 (2008 question paper)

Random sampling methods

Methods of obtaining a Simple Random Sample

Non-Random Sampling Methods

Central Limit Theorem

Q1. Sample Distribution of the Mean

Q2. Sampling distribution of the difference of the 2Means

Q.3 Sampling distribution of Proportions

Q.4 Sampling distributions of the difference of two proportions

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