Learning Objectives

After reading this chapter, you should be able to do the following:

  • Explain how a distribution of sample means is created
  • Explain how a random sample is obtained
  • Determine the mean, the standard deviation, and the shape of a distribution of sample means
  • Explain what the standard error of the mean measures
  • Explain the central limit theorem and why it is important
  • Explain the law of large numbers
  • Compute a z for a sample mean
  • Use the z for a sample mean and a unit normal table to determine how likely a given sample mean is to occur