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Refer to Exercise 5.3. Assume that a random sample of n = 2 measurements is randomly selected from the population.

a. List the different values that the sample median m may assume and find the probability of each. Then give the sampling distribution of the sample median.

b. Construct a probability histogram for the sampling distribution of the sample median and compare it with the probability histogram for the sample mean (Exercise 5.3, part b).

Short Answer

Expert verified

a.

Median

Probability

1

0.04

1.5

0.12

2

0.17

2.5

0.20

3

0.20

3.5

0.14

4

0.08

4.5

0.04

5

0.01

b.

Step by step solution

01

Calculation of the medians

a.

The values of the medians of the respective samples taken from Exercise 5.3 have been determined by taking the central value, as shown below.

Sample

Median

1,1

1

1,2

1.5

1,3

2

1,4

2.5

1,5

3

2,1

1.5

2,2

2

2,3

2.5

2,4

3

2,5

3.5

3,1

2

3,2

2.5

3,3

3

3,4

3.5

3,5

4

4,1

2.5

4,2

3

4,3

3.5

4,4

4

4,5

4.5

5,1

3

5,2

3.5

5,3

4

5,4

4.5

5,5

5

02

Finding the sample distribution

b.

The respective probabilities of the given samples are added to get the final probabilities of the medians, as shown below

Median

Probability

1

0.04

1.5

0.06+0.06=0.12

2

0.04+0.09+0.04=0.17

2.5

0.04+0.06+0.06+0.04=0.20

3

0.02+0.06+0.04+0.06+0.02=0.20

3.5

role="math" localid="1658120147164" 0.03+0.04+0.04+0.03=0.14

4

0.02+0.04+0.02=0.08

4.5

0.02+0.02=0.04

5

0.01

The sample distribution shows that the probabilities of the respective samples are greater than 0 but less than 1.

03

Elucidation of the histogram

The graph contains probabilities on the y-axis and the values of the respective medians of x from 1 to 5 on the x-axis. From the graph, we can say that 2.5 and 3 show the highest probability, which is 0.20.

04

Comparison between the probability histograms of the mean and the median

Exercise 5.3 deals with the mean where the probability histogram of the mean has been drawn.On comparing the same with that of the medians, it can be deduced that the probability histograms are exactly the same.

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Most popular questions from this chapter

:A random sample of n = 68 observations is selected from a population withฮผ=19.6and ฯƒ=3.2Approximate each of the following probabilities

a)pXยฏโฉฝ19.6

b)pXยฏโฉฝ19

c)pXยฏโฉพ20.1

d)p19.2โฉฝXยฏโฉฝ20.6


Question:Who prepares your tax return? As part of a study on income tax compliance (Behavioral Research and Accounting, January 2015), researchers found that 37% of adult workers prepare their own tax return. Assume that this percentage applies to all U.S. adult workers. Now consider a random sample of 270 adult workers.

a. Find the probability that more than 112 of the workers prepare their own tax return.

b. Find the probability that between 100 and 150 of the workers prepare their own tax return

Question: The standard deviation (or, as it is usually called, the standard error) of the sampling distribution for the sample mean, xยฏ , is equal to the standard deviation of the population from which the sample was selected, divided by the square root of the sample size. That is

ฯƒXยฏ=ฯƒn

  1. As the sample size is increased, what happens to the standard error of? Why is this property considered important?
  2. Suppose a sample statistic has a standard error that is not a function of the sample size. In other words, the standard error remains constant as n changes. What would this imply about the statistic as an estimator of a population parameter?
  3. Suppose another unbiased estimator (call it A) of the population mean is a sample statistic with a standard error equal to

ฯƒA=ฯƒn3

Which of the sample statistics,xยฏor A, is preferable as an estimator of the population mean? Why?

  1. Suppose that the population standard deviation ฯƒis equal to 10 and that the sample size is 64. Calculate the standard errors of xยฏand A. Assuming that the sampling distribution of A is approximately normal, interpret the standard errors. Why is the assumption of (approximate) normality unnecessary for the sampling distribution ofxยฏ?

A random sample of n= 300 observations is selectedfrom a binomial population with p= .8. Approximateeach of the following probabilities:

  1. Pp^<0.83
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  3. P0.79<p^<0.81

Question:Stock market participation and IQ. Refer to The Journal of Finance (December 2011) study of whether the decision to invest in the stock market is dependent on IQ, Exercise 3.46 (p. 182). The researchers found that the probability of a Finnish citizen investing in the stock market differed depending on IQ score. For those with a high IQ score, the probability is .44; for those with an average IQ score, the probability is .26; and for those with a low IQ score, the probability is .14.

a. In a random sample of 500 Finnish citizens with high IQ scores, what is the probability that more than 150 invested in the stock market?

b. In a random sample of 500 Finnish citizens with average IQ scores, what is the probability that more than 150 invest in the stock market?

c. In a random sample of 500 Finnish citizens with low IQ scores, what is the probability that more than 150 invest in the stock market?

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