ECO220Y1 Chapter Notes - Chapter 10: Central Limit Theorem, Sampling Distribution, Sample Size Determination

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15 Nov 2013
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ECO220Y1 Full Course Notes
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ECO220Y1 Full Course Notes
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Each proportion is based on a different sample of the population. The proportions vary from sample to sample because the samples comprise different people. A simulation can help understand how sample proportions vary due to random sampling. The way in which the proportions vary sample to sample shows how the proportions of real samples would vary. Sampling variability: the variability we expect to see from sample to sample. The normal model becomes a better and better representation of the distribution of the sample proportions as the sample size gets bigger. Two assumptions in the case of the model for the distribution of sample proportions: independence: sample values must be independent of each other. To check the independence assumption, check the following conditions: Randomization condition: sampling method must not have been biased and the data must be representative of the population. I. e. in an experiment subjects are randomly assigned to treatments.

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