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08-02: Exercises — Sampling Distributions and the Central Limit Theorem

Notes reference: 08-02: Sampling Distributions and the Central Limit Theorem


Q1: Standard error

A population has μ = 80 and σ = 15. Find the mean and standard error of for:

n μ_x̄ σ_x̄
9 ? ?
25 ? ?
100 ? ?
400 ? ?

Solution

n μ_x̄ σ_x̄ = σ/√n
9 80 15/3 = 5.000
25 80 15/5 = 3.000
100 80 15/10 = 1.500
400 80 15/20 = 0.750
The MEAN never changes — x̄ is unbiased at every sample size.
The SPREAD shrinks with √n:

    n × 4   →   standard error ÷ 2      (25 → 100:  3.0 → 1.5)
    n × 16  →   standard error ÷ 4      (25 → 400:  3.0 → 0.75)

To HALVE the standard error you must QUADRUPLE the sample.

Q2: One value vs. a mean

Package weights have μ = 500 g and σ = 20 g, normally distributed.

  1. P(one package weighs more than 508 g)
  2. P(the mean of 25 packages exceeds 508 g)
  3. Why are these so different?

Solution

1.  ONE PACKAGE — use σ
    z = (508 − 500)/20 = 0.40
    P(Z > 0.40) = 1 − 0.6554 = 0.3446              →  34.46%

2.  A MEAN OF 25 — use σ/√n
    σ_x̄ = 20/√25 = 20/5 = 4.0
    z = (508 − 500)/4.0 = 2.00
    P(Z > 2.00) = 1 − 0.9772 = 0.0228              →  2.28%

3.  A single package easily runs 8 g heavy — that is well inside normal
    variation. But for the AVERAGE of 25 packages to run 8 g heavy, the
    heavy ones must not be cancelled by light ones. Averaging shrinks the
    noise by a factor of √25 = 5, so the same 8 g gap is 5× more standard
    errors out.

    THIS IS THE ENGINE OF EVERY HYPOTHESIS TEST: a difference that is
    unremarkable in one observation becomes decisive in a mean.
=1-NORM.DIST(508, 500, 20, TRUE)              ' 0.344578  — one package
=1-NORM.DIST(508, 500, 20/SQRT(25), TRUE)     ' 0.022750  — the mean of 25
pnorm(508, 500, 20, lower.tail = FALSE)          # 0.3446
pnorm(508, 500, 20/sqrt(25), lower.tail = FALSE) # 0.0228

Q3: Does the CLT apply?

For each, say whether the sampling distribution of is approximately normal.

  1. n = 10 from a normal population
  2. n = 10 from a strongly right-skewed population
  3. n = 45 from a strongly right-skewed population
  4. n = 200 from an unknown, possibly bimodal population
  5. n = 12 from a roughly symmetric population

Solution

1. YES — EXACTLY normal. Sampling from a normal population gives a
   normal x̄ at ANY n, no CLT needed.

2. NO  — n = 10 is far too small to overcome strong skew. The sampling
   distribution will still be visibly right-skewed.

3. YES — n = 45 ≥ 30 satisfies the usual rule of thumb.

4. YES — n = 200 is ample. Bimodality in the POPULATION does not survive
   averaging; x̄ still becomes unimodal and normal.

5. YES (approximately) — with a roughly symmetric population, n ≥ 15 is
   generally enough.

RULE OF THUMB SUMMARY
   population normal      →  any n
   roughly symmetric      →  n ≥ 15
   skewed / unknown       →  n ≥ 30
   extremely skewed       →  n > 50, and check with a Q-Q plot

Q4: Interval for a sample mean

Battery life is μ = 42 hours with σ = 6 hours. A sample of 36 is taken.

  1. P(x̄ < 40)
  2. P(41 < x̄ < 43)
  3. The middle 95% of sample means
  4. The value exceeds only 5% of the time

Solution

σ_x̄ = 6/√36 = 6/6 = 1.0

1.  z = (40 − 42)/1.0 = −2.00
    P(Z < −2.00) = 0.0228                       →  2.28%

2.  z₁ = (41 − 42)/1.0 = −1.00
    z₂ = (43 − 42)/1.0 = +1.00
    P = 0.8413 − 0.1587 = 0.6826                →  68.26%

3.  42 ± 1.96(1.0) = 42 ± 1.96  →  (40.04, 43.96) hours

4.  z = 1.6449  →  x̄ = 42 + 1.6449(1.0) = 43.64 hours
=NORM.DIST(40, 42, 6/SQRT(36), TRUE)                     ' 0.022750
=NORM.DIST(43,42,1,TRUE)-NORM.DIST(41,42,1,TRUE)         ' 0.682689
=NORM.INV(0.025, 42, 1)  &  " to "  &  NORM.INV(0.975, 42, 1)
=NORM.INV(0.95, 42, 1)                                   ' 43.6449

Q5: Sampling distribution of a proportion

35% of a city's households own a dog. A random sample of 400 households is drawn.

  1. Check the conditions.
  2. μ_p̂ and σ_p̂
  3. P(p̂ > 0.40)
  4. P(0.32 < p̂ < 0.38)

Solution

1.  np   = 400(0.35) = 140 ≥ 5      ✓
    n(1−p) = 400(0.65) = 260 ≥ 5    ✓
    Sample is well under 5% of the city  ✓
    → the normal approximation is valid

2.  μ_p̂ = p = 0.35
    σ_p̂ = √(0.35 × 0.65 / 400) = √(0.2275/400) = √0.00056875 = 0.023848

3.  z = (0.40 − 0.35)/0.023848 = 2.0966
    P(Z > 2.10) = 1 − 0.9821 = 0.0179            →  1.79%

4.  z₁ = (0.32 − 0.35)/0.023848 = −1.2580
    z₂ = (0.38 − 0.35)/0.023848 = +1.2580
    P = 0.8958 − 0.1042 = 0.7916                 →  79.16%
=SQRT(0.35*0.65/400)                                       ' 0.023848
=1-NORM.DIST(0.40, 0.35, 0.023848, TRUE)                   ' 0.018019
=NORM.DIST(0.38,0.35,0.023848,TRUE)-NORM.DIST(0.32,0.35,0.023848,TRUE)
                                                            ' 0.791617
se <- sqrt(0.35 * 0.65 / 400)
pnorm(0.40, 0.35, se, lower.tail = FALSE)      # 0.01802
pnorm(0.38, 0.35, se) - pnorm(0.32, 0.35, se)  # 0.79162

Q6: Work backwards to n

A process has σ = 12. How large must n be so that the standard error of is at most 2?

Solution

σ/√n ≤ 2
12/√n ≤ 2
√n   ≥ 6
n    ≥ 36

n = 36.

For a standard error of 1:   √n ≥ 12  →  n ≥ 144.
For a standard error of 0.5: √n ≥ 24  →  n ≥ 576.

Halving the target standard error QUADRUPLES the required sample.
This √n economics is the single most important practical fact about
sample size — it is why precision gets expensive fast.

Q7: Simulate the CLT

Start from a strongly right-skewed population and show that becomes normal as n grows.

Solution

set.seed(42)
population <- rexp(100000, rate = 1/10)         # mean 10, sd 10, right-skewed
c(mean = mean(population), sd = sd(population))

draw <- function(n, reps = 5000) replicate(reps, mean(sample(population, n)))
m1 <- draw(1); m5 <- draw(5); m30 <- draw(30); m100 <- draw(100)

par(mfrow = c(2, 2))
hist(m1,   breaks = 50, col = "#8A5FBF", border = NA, main = "n = 1")
hist(m5,   breaks = 50, col = "#5B2A86", border = NA, main = "n = 5")
hist(m30,  breaks = 50, col = "#0B7A7A", border = NA, main = "n = 30")
hist(m100, breaks = 50, col = "#0FA3A3", border = NA, main = "n = 100")
par(mfrow = c(1, 1))

data.frame(
  n         = c(1, 5, 30, 100),
  sim_mean  = c(mean(m1), mean(m5), mean(m30), mean(m100)),
  sim_se    = c(sd(m1),   sd(m5),   sd(m30),   sd(m100)),
  theory_se = 10 / sqrt(c(1, 5, 30, 100))
)
TYPICAL OUTPUT

   n   sim_mean   sim_se   theory_se
   1     10.0      10.0      10.00
   5     10.0       4.5       4.47
  30     10.0       1.8       1.83
 100     10.0       1.0       1.00

THREE THINGS TO NOTICE
 1. The MEAN is 10 at every n — x̄ is unbiased.
 2. The simulated SE matches σ/√n almost exactly.
 3. The SHAPE goes from strongly right-skewed (n = 1) to visibly
    bell-shaped by n = 30 — that is the Central Limit Theorem.
rng = np.random.default_rng(42)
population = rng.exponential(scale=10, size=100_000)

def draw(n, reps=5000):
    return rng.choice(population, size=(reps, n)).mean(axis=1)

for n in (1, 5, 30, 100):
    m = draw(n)
    print(n, round(m.mean(), 2), round(m.std(ddof=1), 2), round(10/np.sqrt(n), 2))
' 1. Column A: 1,000 exponential values   =-LN(RAND())*10
' 2. Columns C..AF: 30 more such columns (each ROW is one sample of 30)
' 3. Column AH:  =AVERAGE(C2:AF2)          the mean of each sample
' 4. Histogram column A   → strongly right-skewed
'    Histogram column AH  → bell-shaped and much narrower
=STDEV.S(AH2:AH1001)      ' ≈ 10/√30 = 1.83

Q8: Explain the difference

A colleague says: "The CLT means that with a big enough sample, my data will be normally distributed."

Correct them.

Solution

WRONG. Increasing n does NOT change the shape of the raw data. A sample
of a million incomes is still right-skewed — it just estimates the
skewed population shape more precisely.

RIGHT. The CLT is about the SAMPLING DISTRIBUTION OF A STATISTIC.
It says that the distribution of x̄ ACROSS REPEATED SAMPLES approaches
normal as n grows, whatever the population shape.

THE THREE DISTRIBUTIONS, KEPT STRAIGHT

  1. POPULATION distribution   — spread σ, any shape. Fixed.
  2. SAMPLE distribution       — spread s, mimics the population shape.
                                 Bigger n → LOOKS MORE LIKE the population.
  3. SAMPLING distribution of x̄ — spread σ/√n, approaches NORMAL.
                                 Bigger n → NARROWER and MORE NORMAL.

WHY IT MATTERS: the t-test, z-test, and confidence interval all assume
#3 is normal. They do NOT require #1 or #2 to be normal — which is what
makes them usable on messy real-world data.

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