12.5 The Mean and Standard Deviation of the Sampling Distribution

1. After Section 12.4 above, all the ten (10) sample means should be on the same row (Figure 12.2). From these sample means calculate the mean and standard deviation (use STDEV.S) for the FB Close Prices in an empty part of the worksheet.

2. Calculate the population standard deviation value in Section 12.2 divided by \(\sqrt{20}\) (square root of the sample size).

Recall that the theoretical value of generating all the samples of size 20 should be \(\mu_{\bar{x}}=\mu\) and \(\sigma_{\bar{x}}=\sigma/\sqrt{n}\). Compare the results in Step 1 with the results obtained in Step 2.