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Sec. 5.4 β Sampling Distributions and the Central Limit Theorem A ____________ _____________ is the probability distribution of a sample statistic that is formed when samples of size π are repeatedly taken from a population. If the sample statistic is the sample mean, then the distribution is the _____________ __________ of ___________ _____________. Every sample statistic has a sampling distribution. Important properties of sampling distributions of sample means: 1. The mean of the sample means ______ is equal to the population mean _____. ππ₯Μ = π 2. The standard deviation of the sample means ______ is equal to the population standard deviation ______ divided by the square root of _____. This is also called the ____________ _____________ of the mean. ππ₯Μ = π βπ The Central Limit Theorem 1. If π β₯ 30 then the sampling distribution of sample means is approximately normally distributed no matter what distribution represents the actual population. 2. For any size π, if the population is normally distributed, then the sampling distribution is also normally distributed. Any Population Distribution Normal Population Distribution Distribution of sample means if π β₯ 30 Distribution of sample means (for any size π) Phone bills for residents of a city have a mean of $64 and a standard deviation of $9. Random samples of 36 phone bills are drawn from this population and the mean of each sample is determined. Find the mean and standard error of the mean of the sampling distribution. The heights of fully grown white oak trees are normally distributed, with a mean of 90 feet and standard deviation of 3.5 feet. Random samples of size 4 are drawn from this population, and the mean of each sample is determined. Find the mean and standard error of the mean of the sampling distribution. The mean room and board expense per year of four-year colleges is $6803. You randomly select 9 four-year colleges. What is the probability that the mean room and board is less than $7088? Assume that the room and board expenses are normally distributed, with a standard deviation of $1125. A bank auditor claims that credit card balances are normally distributed, with a mean of $2870 and a standard deviation of $900. (1) What is the probability that a randomly selected credit card holder has a credit card balance less than $2500? (2 ) You randomly select 25 credit card holders .What is the probability that their mean credit card balance is less than $2500? Compare the probabilities from (1) and (2) and interpret your answer in terms of the auditorβs claim in a complete sentence or two.