CHAPTER REVIEW ❍ 287
CHAPTER REVIEW
Key Concepts and Formulas
I. Sampling Plans and Experimental 3. Probabilities involving the sample mean can
Designs be calculated by standardizing the value of
1. Simple random sampling !x using z:
a. Each possible sample of size n is equally x! $ m
likely to occur. z"# #
s/"n!
b. Use a computer or a table of random num-
bers. IV. Sampling Distribution of the Sample
c. Problems are nonresponse, undercoverage, Proportion
and wording bias. 1. When samples of size n are drawn from a bino-
2. Other sampling plans involving randomization mial population with parameter p, the sample
proportion p̂ will have an approximately normal
a. Stratified random sampling
distribution with mean p and standard deviation
b. Cluster sampling ! as long as np % 5 and nq % 5.
"pq/n
c. Systematic 1-in-k sampling 2. Probabilities involving the sample proportion
3. Nonrandom sampling can be calculated by standardizing the value p̂
a. Convenience sampling using z:
b. Judgment sampling p̂ $ p
z" #
c. Quota sampling pq
II. Statistics and Sampling Distributions
#$
##
n
1. Sampling distributions describe the possible V. Statistical Process Control
values of a statistic and how often they occur 1. To monitor a quantitative process, use an !x
in repeated sampling. chart. Select k samples of size n and calculate
2. Sampling distributions can be derived mathe- the overall mean x!! and the standard deviation s
matically, approximated empirically, or found of all nk measurements. Create upper and lower
using statistical theorems. control limits as
3. The Central Limit Theorem states that sums s
and averages of measurements from a nonnor- !!x & 3##
mal population with finite mean m and stan- "!n
dard deviation s have approximately normal
If a sample mean exceeds these limits, the pro-
distributions for large samples of size n.
cess is out of control.
III. Sampling Distribution of the Sample 2. To monitor a binomial process, use a p chart.
Mean Select k samples of size n and calculate the
1. When samples of size n are randomly drawn average of the sample proportions as
from a normal population with mean m and
variance s 2, the sample mean x! has a normal S p̂
p! " ##i
distribution with mean m and standard devia- k
tion s/"n !.
Create upper and lower control limits as
2. When samples of size n are randomly drawn
from a nonnormal population with mean m and p!(1 $ p!)
variance s 2, the Central Limit Theorem ensures #$$
!p & 3 #n#
that the sample mean x! will have an approxi-
mately normal distribution with mean m and stan- If a sample proportion exceeds these limits, the
dard deviation s/"n ! when n is large (n ! 30). process is out of control.