Guide to Using Excel For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 6th Ed. Chapter 6: Introduction to Sampling Distributions By Groebner, Shannon, Fry, & Smith Prentice-Hall Publishing Company Copyright, 2005

Chapter 6 Excel Examples  Sampling Distributions - Sampling Distributions - Aims Investment Company

Sampling Distributions Aims Investment Company Issue: We wish to develop a sampling distribution for the sample mean for the number of mutual fund accounts owned by each customer. Objective: Use Excel to select a random sample of size 10 from the data and develop a sampling distribution. The data file is Aims.xls

Open File Aims.xls File contains data for 200 customers – last row is 201 Sampling Distributions – Aims Investment Company

Click on Tools – then Data Analysis – then select Sampling Sampling Distributions – Aims Investment Company

Complete information to select a random sample of 10 members (column B) Sampling Distributions – Aims Investment Company

Sample of n=10 values – number of mutual fund accounts owned by each customer. Sampling Distributions – Aims Investment Company

Sample Mean = 2.2 Repeat this process 100 times – Store the sample mean in a column. Sampling Distributions – Aims Investment Company

Now, develop a histogram for the sample means using Excel default group widths Sampling Distributions – Aims Investment Company

Click on Tools – then Data Analysis – then select Histogram Sampling Distributions – Aims Investment Company

Supply data range – check Chart Output When Bin Range is left blank, Excel will select default class widths Sampling Distributions – Aims Investment Company

Excel default Histogram See the Capital Credit Union Example in Chapter 2 for specific steps to reformat the histogram Sampling Distributions – Aims Investment Company

Sampling Distribution – approximately normally distributed. Sampling Distributions – Aims Investment Company