mples of Size 3Ó Samples of Size 50 350 250 300 200 250 150 200 150 - 100 100 50 50 5000 15,000 25,000 5000 20,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Samples of Size 100 Samples of Size 200 250 150 200 150 100 100 50 6000 20,000 8000 14,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Number of Samples Number of Samples Number of Samples Number of Samples
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
CEO compensation In Chapter 5 we saw the distribution
of the total compensation of the chief executive officers
(CEOs) of the 800 largest U.S. companies (the Fortune
800). The average compensation (in thousands of dollars)
is 10,307.31 and the standard deviation is 17,964.62.
Here is a histogram of their annual compensations (in
$1000):
A research organization simulated sample means by
ment, from the 800 CEOs. The histograms show the
bution model for sample means. Be sure to talk about
c) Comment on an oft-cited “rule of thumb” that “With a
sample size of at least 30, the sampling distribution of
the mean is Normal.”
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