This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
Explain the relationship between the sampling distribution and sample size. 2. Explain the meaning of sampling error. 3. From a random sample of 40 divers, what is the probability that the mean time they spend in water is between 60 minutes and 90 minutes if the standard deviation is 2 minutes. 4. Explain the central limit theorem and state its importance in statistics. 5. A population consists of fire 4 numbers 25, 26, 30 and 22. a) Draw out all the possible samples of size 2 that can be obtained from this population. b) Determine the mean of the sampling distribution of means. c) Calculate the standard deviation of sampling distribution of means

ScanSolve AI Answer
Question 1:
The sampling distribution of the sample mean becomes narrower as the sample size increases because its variance is , which decreases as grows. Larger samples lead to means closer to the population mean . For large , the Central Limit Theorem ensures the sampling distribution is approximately normal.
Question 2:
A random sample is a subset where each population element has an equal chance of selection. Sampling error is the random difference between a sample statistic (e.g., ) and the population parameter (e.g., ). Its expected value is zero, and it shrinks with larger . (The probability query on mean time within 2 minutes for times between 60-90 minutes lacks full details like distribution or ; assuming uniform or normal, use Chebyshev or z-scores accordingly, but cannot compute precisely.)
Question 3:
The Central Limit Theorem (CLT) states that for large , the sampling distribution of is approximately normal with mean and variance , regardless of population shape. Importance: Enables inference (confidence intervals, hypothesis tests) using normal tables even for non-normal populations; crucial in statistics for .
Question 4:
The population consists of four numbers: .
Question 5a: All possible samples of size (simple random sampling without replacement, , so equally likely samples):
Step 1: Compute sample means for each.
Question 5b: Mean of the sampling distribution .
Step 2: .
Sum of sample means: .
The mean of the sampling distribution is .
Question 5c: Standard deviation of the sampling distribution .
Step 3: Population variance .
Sum = , so .
Step 4: Use formula for without replacement:
The standard deviation of the sampling distribution is .
\sqrt{\frac{131{48}}}
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