A Business Encyclopedia

Sampling Distribution of Proportion

Definition: The Sampling Distribution of Proportion measures the proportion of success, i.e. a chance of occurrence of certain events, by dividing the number of successes i.e. chances by the sample size ’n’. Thus, the sample proportion is defined as p = x/n.

The sampling distribution of proportion obeys the binomial probability law if the random sample of ‘n’ is obtained with replacement. Such as, if the population is infinite and the probability of occurrence of an event is π’, then the probability of non-occurrence of the event is (1-π).  Now consider all the possible sample size ‘n’ drawn from the population and estimate the proportion ‘p’ of success for each. Then the mean (?p) and the standard deviation (σp) of the sampling distribution of proportion can be obtained as:

Sampling distribution of proportion
p = mean of proportion
π = population proportion which is defined as π = X/N, where X is the number of elements that possess a certain characteristic and N is the total number of items in the population.
σp = standard error of proportion that measures the success (chance) variations of sample proportions from sample to sample
n= sample size, If the sample size is large (n≥30), then the sampling distribution of proportion is likely to be normally distributed.

The following formula is used when population is finite, and the sampling is made without the replacement:

Sampling distribution of proportion-2

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

organisational theorycost push inflation occurs whenelectronic retailing definitiondefine gangplankcharging depreciationleverage finance definitionstatistical methods of demand forecastingcontribution in marginal costingsnowball definitiondelegating defwhat is subsistence wagesanctuary meaning in urdugeocentric approachwhat is law of diminishing marginal utilityformula of fixed assets turnover ratiowhat are virtues in ethicsfactors considered in wage determinationansoff matrix in marketingsbu sdagoes definitionfiscal deficit in hindiexamples of laissez-faire leadershipinternal and external factors affecting marketing environmentbases for segmentationthe sales to fixed asset ratio indicatesspearmans rank formulavertical market examplessocial loaftingadvantages of nominal group techniquepurchasing power parity equationstratified sampling meaningdefine ethnocentric approachinternational marketing segmentationtrait theory allportmarginal rate of substitution meaninghow to compute profit margin ratiomonetary phenomenon definitionconcentric diversification strategymeaning of variable expensestotal capital ratio definitionmanpower planning meaningmeaning of rbiwhat causes demand pull inflationretailing meaning and definitiondefinition of propoundwhat does polycentric meana firm in an oligopolistic marketdetermine hindi meaningtheories of dividend decisiontotal utility marginal utilitydefinition of shrmsnowball samplingtypes of price elasticity of demand with graphswhat are the four characteristics of a pure monopolyhedging definition financeemployee provident schemepavlov classical conditioning theory of learningvh vroombridge financing definitiondelegated powers definesalience defepf pfdelphi defineexample of an ordinal scaleblake and mouton managerial grid theorymsf rateoligarchy marketdefine elasticity of demandmcclelland acquired needs theorywhat is the meaning of kiosk in hindiethnocentric business definitionbehavioural segmentation examples