POINTERS 3RD QUARTERLY ASSESSMENT

RANDOM VARIABLES AND PROBABILITY DISTRIBUTION

• Sample Space – set of all possible outcomes of an experiment.

• Variable – a characteristic or attribute that can assume different values.
• Random Variable – variables whose value is unknown or a function that assigns values to each of an
experiment’s outcomes. It can be either discrete (have specific values) or continuous (any value in continuous
range).
• Discrete Random Variable – set of possible outcomes that is countable.
• Continuous Random Variable – set of random variables that take on values on a continuous scale.
• Probability Distribution
o The probability of each values of the random variable must be between or equal to 0 and 1. In symbol,
we write as 𝟎 ≤ 𝑷(𝒙) ≤ 𝟏.
o The sum of the probabilities of all values of the random variable must be equal to 1. In symbol, we
write it as Σ𝑃(𝑋) = 1.
• Mean of the Probability Distribution
o The mean of a probability distribution is given by 𝝁 = 𝚺𝑿 ⋅ 𝑷(𝑿) where 𝑿 is a possible outcome
and 𝑷(𝑿) is its probability.
o The mean of a probability distribution is also referred to as the 𝒆𝒙𝒑𝒆𝒄𝒕𝒆𝒅 𝒗𝒂𝒍𝒖𝒆.
• Variance and Standard Deviation of a Discrete Probability Distribution
o The variance of a discrete probability distribution is given by the formula:
𝝈𝟐 = 𝚺(𝑿 − 𝝁)𝟐 ⋅ 𝑷(𝑿)
o The standard deviation of a discrete probability distribution is given by the formula:
𝝈 = √𝚺(𝑿 − 𝝁)𝟐 ⋅ 𝑷(𝑿)
where:
𝑿 is the random variable;
𝑷(𝑿) is the probability of the random variable 𝑿; and
𝝁 is the mean of the probability distribution.
• Alternative formula for the Variance and Standard Deviation of a Discrete Probability Distribution
o The variance of a discrete probability distribution can be solved using the formula:
𝝈𝟐 = 𝚺[𝑿𝟐 ⋅ 𝑷(𝑿)] − 𝝁𝟐
o The standard deviation of a discrete probability distribution can also be solved using the formula:
𝝈 = √𝚺[𝑿𝟐 ⋅ 𝑷(𝑿)] − 𝝁𝟐
where:
𝑿 is the random variable;
𝑷(𝑿) is the probability of the random variable 𝑿; and
𝝁 is the mean of the probability distribution.

NORMAL DISTRIBUTION

• Normal Distribution – a distribution of a continuous random variable whose graph is bell-shaped curved
called the normal curve.
• Properties of the Normal Distribution
o Its curve is bell-shaped.
o Its curve is symmetric about the mean.
o The mean, median, and mode coincide at the center of the distribution.
o The distribution is unimodal.
o Its curve is asymptotic with respect to the 𝑥-axis.
o The total area under the curve is 1.
• Standard Normal Distribution – a normal distribution with a mean of 0 and a standard deviation of 1.
• Z-score – tells how many standard deviations a value is away from the mean. The negative z-score tells that
the value is below the mean, while the positive z-value is above the mean.
𝑿−𝝁
𝒛=
𝝈
SAMPLING AND SAMPLING DISTRIBUTION

• Random Sampling – refers to the sampling technique in which each member of the population is given equal
chance to be chosen as part of the sample.
o Lottery Sampling. It is a sampling technique in which each member of the population has an equal
chance of being selected.
o Systematic Sampling. It is a sampling technique in which members of the population is listed and
samples are selected at intervals called sample intervals.
o Stratified Random Sampling. It is a sampling procedure in which members of the population are
grouped based on their homogeneity. This technique is used when there are numbers of distinct
subgroups in the population within which full representation is required.
o Cluster Sampling. It is sometimes referred as area sampling and applied on geographical basis.
Generally, first sampling is performed at higher levels before going down to lower levels.
o Multi-State Sampling. Uses a combination of different sampling techniques.
• Parameter VS Statistic
o Parameter. It is a measure or characteristic obtained by using all the data values in the population. It
can be numerical or nominal level of measurement. It is also referred as the true value of the population.
o Statistic. It is a measure or characteristic obtained only by using the data values in a sample. It is an
estimate of the parameter.
• Sampling Distribution of Sample Means – frequency distribution using the means computed from all possible
random samples of a specific size taken from a population. It is also called as the probability distribution of the
sample means.
• Steps in Constructing the Sampling Distribution of the Sample Means
o Step 1. Determine the number of possible samples that can be drawn from the population using the
formula:
𝑵!
▪ 𝑵 𝑪𝒏 = 𝒏!(𝑵−𝒏)!; where 𝑵 is the size of the population and 𝒏 is the size of the sample.
o Step 2. List all the possible samples and compute the mean of each sample.
o Step 3. Construct the frequency distribution of the sample means obtained in Step 2.
• Mean And Variance of Sampling Distribution
𝚺𝑿
o To find the population mean: 𝝁 = 𝑵
o To find the population variance, use the following formula:
𝚺(𝑿−𝝁)𝟐 𝚺𝑿𝟐 𝚺𝑿 𝟐
𝝈𝟐 = or 𝝈𝟐 = −(𝑵)
𝑵 𝑵
o To find the population standard deviation, use the following formula:
𝚺(𝑿−𝝁)𝟐 𝚺𝑿𝟐 𝚺𝑿 𝟐
𝝈 = √𝝈𝟐 = or 𝝈=√ −(𝑵) or simply 𝝈 = √𝝈𝟐
𝑵 𝑵
o To find the mean of the sampling distribution of the sample means: 𝝁𝑿̅ = 𝝁
o To find the variance of the sampling distribution of the sample means, use the following formula:
̅ − 𝝁)𝟐 ⋅ 𝑷(𝑿
𝝈𝟐 𝒙̅ = 𝚺(𝑿 ̅) or ̅ 𝟐 ⋅ 𝑷(𝑿
𝝈𝟐 𝒙̅ = 𝚺[𝑿 ̅ )] − 𝝁𝟐
o To find the standard deviation of the sampling distribution of the sample means, simply find the square
root of the variance. That is: 𝝈𝒙̅ = √𝝈𝟐
• Properties of the Sampling Distribution of the Sample Means
If all possible random samples size 𝒏 are taken with 𝒓𝒆𝒑𝒍𝒂𝒄𝒆𝒎𝒆𝒏𝒕 from a population with 𝜇 and 𝜎 2 , then
the mean of the sampling distribution of the sample means (𝜇𝑥̅ ), the variance of the sampling distribution
of the sample means (𝜎 2 𝑥̅ ); and standard deviation of the sampling distribution of the sample means
(𝜎𝑥̅ ) are:
▪ 𝝁𝒙̅ = 𝝁 mean
𝝈𝟐
▪ 𝝈𝟐 𝒙̅ = 𝒏 variance
▪ 𝝈𝒙̅ = √𝝈𝒏 standard deviation or standard error
Note: the standard deviation of the sample distribution of the sample means is
also known as the standard error of the mean. It measures the degree of
accuracy of the sample mean as an estimate of the population mean.
 If all possible samples of size n are taken 𝒘𝒊𝒕𝒉𝒐𝒖𝒕 𝒓𝒆𝒑𝒍𝒂𝒄𝒆𝒎𝒆𝒏𝒕 from a finite population of size N with
𝜇 and 𝜎 2 , then the mean of the sampling distribution of the sample means (𝜇𝑥̅ ), the variance of the
sampling distribution of the sample means (𝜎 2 𝑥̅ ); and standard deviation of the sampling distribution of
the sample means (𝜎𝑥̅ ) are:
▪ 𝝁𝒙̅ = 𝝁 mean
𝝈𝟐 𝑵−𝒏
▪ 𝝈𝟐 𝒙̅ = 𝒏
⋅(
𝑵−𝟏
) variance

▪ 𝝈𝒙̅ = √𝝈𝒏 ⋅ (√𝑵−𝒏

𝑵−𝟏
) standard deviation or standard error

𝑁−𝑛
Note: The factor is called 𝒄𝒐𝒓𝒓𝒆𝒄𝒕𝒊𝒐𝒏 𝒇𝒂𝒄𝒕𝒐𝒓 for finite population.
𝑁−1
It will be close to 𝟏 and can be safely ignored when 𝒏 is small compared
to 𝑵.

• Sampling Distribution of Large Sample Size (𝒏 ≥ 𝟑𝟎)

o If large sample size is taken from a population with a mean 𝝁 and standard deviation 𝝈, then the sampling
distribution of the sample mean approaches the normal distribution with a mean 𝜇𝑥̅ = 𝜇 and standard
̅−𝝁
𝒙
deviation 𝜎/√𝑛 can be standardized as 𝒛 = 𝝈/ 𝒏. This formula can only be used if the population
√
variance or standard deviation is known. If the population variance or standard deviation is unknown,
the formula can still be used where the standard deviation of the sample 𝒔 can be used to replace 𝝈.
o The Central Limit Theorem states that if random samples of size 𝒏 are drawn from a population, then
as 𝒏 becomes larges, the sampling distribution of the means approaches the normal distribution,
regardless of the shape of the population distribution.
• Sampling Distribution of Small Sample Size (𝒏 < 𝟑𝟎)
o If the sample size is less than 30 (𝒏 < 𝟑𝟎), it is considered small, thus, even if the variance of the
population is known, the formula for standardizing the sampling distribution of the sample means cannot
be used.
o For a special case where the sample size is small is known from a normally distributed population, even
if the variance is unknown, another type of distribution is used.
o If 𝒙 ̅ and 𝒔 of a random sample of size 𝑛 taken from a normally distributed population with 𝜇, it can be
̅−𝝁
𝒙
standardized using the formula: 𝒕 = 𝒔/ 𝒏; a value of a random variable T following the 𝑡-distribution.
√
o Take note that formula above is used when 𝑛 < 30 and the population standard deviation is unknown.
• The T-distribution. The 𝒕-distribution shares some characteristics of the normal distribution and differs from it in
others. The 𝒕-distribution is similar to the standard normal distribution in these ways:
o It is bell-shaped.
o It is symmetric about the mean.
o The mean, median, and mode are equal to 0 and are located at the center of the distribution.
o The curve never touches the x-axis.
• The 𝒕-distribution differs from the standard normal distribution in the following ways:
o The variance is greater than 1. It is more variable since its value depends on the fluctuations of mean
and variance form sample to sample.
o The 𝒕-distribution is actually a family of curves based on the concept of degrees of freedom (𝑛 − 1),
which is related to sample size.
o As the sample size increases, the 𝒕-distribution approaches the standard normal distribution.

ESTIMATIO OF PARAMETERS

• Statistical Inference – making conclusion or generalization about the population based on study of samples.
• Point Estimate – single value that estimates the population parameter, such as 𝒙 ̅ as estimate for 𝝁, or 𝑠 as
estimate for 𝜎.
• Interval Estimate – sometimes called confidence interval, is a range or interval (with lower and upper limits)
used to estimate the population parameter. It is usually in the form 𝒂 < 𝜽 < 𝒃, which tells that the estimated
parameter (𝜽) is between two values (a and b) at a certain level of confidence.
• When the population variance or standard deviation is known, or when 𝑛 ≥ 30 (by Central Limit Theorem), the
formula below can be used as an interval estimate of population mean 𝜇 at a certain degree of confidence (𝛼):
𝝈 𝝈
̅ − 𝒛𝜶 ( ) < 𝝁 < 𝒙
𝒙 ̅ + 𝒛𝜶/𝟐 ( )
𝟐 √𝒏 √𝒏
• The values of 𝑧𝛼/2 are listed below with the usual confidence level used in estimating population mean.

• Margin of Error. It refers to the maximum acceptable difference (determined by 𝜶) between the
observed sample statistic (mean or proportion) and the true population parameter (mean or
𝝈 𝝈 𝝈
proportion). From the formula 𝒙 ̅ + 𝒛𝜶/𝟐 ( ), 𝒛𝜶/𝟐 ( ) is the margin of error. Thus,
̅ − 𝒛𝜶 ( ) < 𝝁 < 𝒙
𝟐 𝒏√ 𝒏 √ 𝒏 √
𝝈
𝑬= 𝒛𝜶/𝟐 ( 𝒏)
√
• Sometimes, before we conduct a study or research, it is very important to know how many members
of the population we should use as samples, and most often, we want our sample size to be
manageable. For this, we must select the minimum number which can give a reliable and/or result. A
formula for sample size determination can be used whenever the population variance is known, at a
desired margin of error. The formula which can be used is:
𝒛𝜶 ⋅ 𝝈 𝟐
𝒏=( 𝟐 )
𝑬

where 𝐸 = margin or error

𝜎 = population standard deviation.

Take note that if the computed value of 𝒏 has a decimal part, round the value to the next whole
number.