Consider the percent change in revenues for the five largest soap and cosmetics firms as shown in Table 8.6.3. View this list as a (very small!) population with just N = 5 units. Consider drawing samples of size n = 2.
a. Make a list of all possible samples of size 2 that might be chosen. (Hint: There are 10 such samples.) For each sample, find the average.
b. Construct a histogram of the 10 sample averages from part a. This is the sampling distribution of the sample average.
c. Select a random-sample of size 2 from the population by starting with the number in row 26, column 4 of the table of random digits. Find the sample average.
d. Indicate where the average (from part c) falls with respect to the sampling distribution (from part b).
e. Write a paragraph explaining how €œdrawing a random sample from the population and finding the average€ gives essentially the same result as €œdrawing a number from the sampling distribution of the average.€

TABLE 8.6.3 Percent Change in Revenues for Fortune 500 Soap and Cosmetics Companies Company Procter & Gamble Colgate-Palmolive Avon Products Estee Lauder Clorox Revenues % Change 3% 7 10