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How does the mean of a sample behave when we take many samples from a population?

The sampling distribution of the sample mean is approximately normal, centred on the population mean, with a standard deviation that shrinks as the sample size grows.

What a sampling distribution is, the mean and standard error of the sample mean, and how the Central Limit Theorem makes the sample mean approximately normal.

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  1. What this dot point is asking
  2. Mean and standard error
  3. The Central Limit Theorem
  4. Sums versus means
  5. Why averaging reduces spread
  6. Common errors
  7. Why it matters

What this dot point is asking

A single sample gives one estimate of the population mean, but if you took another sample you would get a slightly different xˉ\bar{x}. The sampling distribution of the sample mean describes how these sample means vary from sample to sample.

Mean and standard error

The sampling distribution has a smaller spread than the population, because averaging cancels out extreme individual values.

The standard error shrinks as nn grows, but only with n\sqrt{n} - to halve the spread you must take four times as many observations.

The Central Limit Theorem

This is what makes statistical inference possible: even with a skewed population, you can use normal-distribution methods on the sample mean.

Sums versus means

SACE questions phrase the same idea two ways: the sample mean Xˉ\bar X and the sample sum Sn=X1+X2++XnS_n=X_1+X_2+\dots+X_n. For the sum, the mean is nμn\mu and the standard deviation is nσ\sqrt{n}\,\sigma, because both the means and the variances of independent observations add. For the mean, dividing the sum by nn gives mean μ\mu and standard deviation σn\dfrac{\sigma}{\sqrt{n}}. Notice the contrast: the spread of a sum grows with n\sqrt{n} while the spread of a mean shrinks with n\sqrt{n}. Reading whether the question is about a total or an average decides which result you use.

Why averaging reduces spread

It is worth understanding why the standard error shrinks. In any sample, some observations land above the population mean and some below; when you average them, the high and low values partly cancel. The larger the sample, the more complete this cancellation, so sample means cluster ever more tightly around μ\mu. The n\sqrt{n} rather than nn in the denominator reflects that this cancellation is partial - randomness does not vanish, it just averages down at the rate of the square root of the sample size, which is the law of diminishing returns behind every sample-size calculation.

Common errors

Why it matters

The sampling distribution is the conceptual core of Topic 6. The standard error σ/n\sigma/\sqrt{n} and the Central Limit Theorem are exactly what allow you to build confidence intervals for a population mean in the next dot points, and they explain why larger samples give more precise estimates.

Exam-style practice questions

Practice questions written in the style of SACE Board exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.

SACE 20232 marksCalculator-assumed. Daily milk production per cow has mean 21.921.9 litres and standard deviation 3.263.26 litres. Let S90S_{90} be the total daily production of a random sample of 90 cows. Show that S90S_{90} has mean 19711971 litres and standard deviation 30.9330.93 litres (to four significant figures).
Show worked answer →

For a sum of nn independent observations, the means add and the variances add (so the standard deviation is multiplied by n\sqrt{n}).

Mean of S90=nμ=90×21.9=1971S_{90} = n\mu = 90 \times 21.9 = 1971 litres.

Standard deviation of S90=nσ=90×3.26=9.4868×3.2630.93S_{90} = \sqrt{n}\,\sigma = \sqrt{90} \times 3.26 = 9.4868 \times 3.26 \approx 30.93 litres.

Marks: one for the mean, one for the standard deviation using 90\sqrt{90} (not 9090). Only variances add directly, so the standard deviation scales with n\sqrt{n}.

SACE 20222 marksCalculator-assumed. The number of shares of a meme has mean 131.25131.25 and standard deviation 221221. Let S75S_{75} be the sum of the shares of a random sample of 75 memes. Show that S75S_{75} has mean 98449844 shares and standard deviation 19141914 shares.
Show worked answer →

For the sum of nn independent variables, multiply the mean by nn and the standard deviation by n\sqrt{n}.

Mean of S75=75×131.25=9843.759844S_{75} = 75 \times 131.25 = 9843.75 \approx 9844 shares.

Standard deviation of S75=75×221=8.6603×2211914S_{75} = \sqrt{75} \times 221 = 8.6603 \times 221 \approx 1914 shares.

Marks: one for the mean, one for the standard deviation using 75\sqrt{75}. By the Central Limit Theorem S75S_{75} is also approximately normal.

SACE 20213 marksCalculator-assumed. A population has mean μ=80\mu = 80 and standard deviation σ=15\sigma = 15. A random sample of size n=25n = 25 is taken. (a) State the mean and standard error of Xˉ\bar{X}. (b) Find Pr(Xˉ<76)\Pr(\bar{X} < 76).
Show worked answer →

(a) μXˉ=80\mu_{\bar X} = 80 and σXˉ=σn=1525=155=3\sigma_{\bar X} = \dfrac{\sigma}{\sqrt{n}} = \dfrac{15}{\sqrt{25}} = \dfrac{15}{5} = 3. (1 mark)

(b) Standardise the sample mean using the standard error: z=76803=1.333z = \dfrac{76 - 80}{3} = -1.333. Then Pr(Xˉ<76)=Pr(Z<1.333)0.0912\Pr(\bar X < 76) = \Pr(Z < -1.333) \approx 0.0912. (2 marks)

Marks reward using the standard error σ/n\sigma/\sqrt{n}, not σ\sigma, when standardising a sample mean.

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