Sampling and Estimation
• Extract random samples from the provided dataset.
• Compute statistical measures (Mean, Variance, Standard Deviation, and Standard
Error).
• Compute Sampling Error for better decision-making.
• Use Excel functions for statistical analysis.
Dataset Overview
The dataset consists of 50 randomly sampled values, representing real-world data.
We will analyze this dataset using statistical formulas and Excel functions.
Step 1: Compute Sample Mean
Definition
The Sample Mean is the average value of all sample observations. It provides an estimate
of the central tendency of the dataset.
Excel Formula
To calculate the Sample Mean, use:
=AVERAGE(A1:A50)
(Assuming the dataset is in Column A from A1 to A50.)
Why? The mean gives an overall idea of the central tendency of the sample data.
Step 2: Compute Sample Variance
Definition
Variance measures the spread of data points around the mean. It indicates how much the
data deviates from the average value.
Excel Formula
To compute Sample Variance, use:
=VAR.S(A1:A50)
Why? Variance helps to understand the dispersion of the data points around the
mean.
Step 3: Compute Sample Standard Deviation
Definition
The Standard Deviation measures the extent of variation in the dataset. It is simply the
square root of variance and is easier to interpret than variance.
Excel Formula
To compute Sample Standard Deviation, use:
=STDEV.S(A1:A50)
Why? A higher standard deviation indicates that the data points are more spread out
from the mean.
Step 4: Compute Standard Error of the Mean (SE)
Definition
The Standard Error of the Mean (SE) measures how much the sample mean is expected to
fluctuate from the true population mean. Larger samples have smaller SE.
Excel Formula
To compute Standard Error, use:
=STDEV.S(A1:A50) / SQRT(50)
Why? SE is crucial in estimating how precise our sample mean is in representing the
population mean.
Step 5: Compute Sampling Error
Definition
The Sampling Error is the difference between the Sample Mean and the Population
Mean. It quantifies the deviation of the sample from the population.
Excel Formula
If the Population Mean is known (e.g., 0.55):
=ABS(AVERAGE(A1:A50) - 0.55)
If the Population Mean is unknown, additional samples must be used to estimate it.
Why? This helps in understanding how close the sample estimate is to the true
population mean.
Final Deliverables
Each student should submit an Excel file containing:
1. Sample Statistics Table:
o Sample Mean
o Sample Variance
o Sample Standard Deviation
o Standard Error
o Sampling Error Calculation (if Population Mean is provided)
2. Graphical Representation:
o Histogram Chart of Sample Data
Learning Outcomes
By completing this lab, students will:
Compute and interpret statistical metrics (Mean, Variance, Standard Deviation, and
SE).
Understand the impact of sample size on estimation accuracy.
Use Excel efficiently for statistical calculations.
Understand sampling error and variability in data
