DEFINITION of 'Sampling Distribution'
A probability distribution of a statistic obtained through a large number of samples drawn from a specific population. The sampling distribution of a given population is the distribution of frequencies of a range of different outcomes that could possibly occur for a statistic of a population.
INVESTOPEDIA EXPLAINS 'Sampling Distribution'
For example, suppose you wanted to find out the sampling distribution of SAT scores for all U.S. high school students in a given year. To do so, you would take repeated random samples of high school students from the general population and then compute the average test score for each sample. The distribution of those sample means would provide you with the sampling distribution for the average SAT test score.
RELATED TERMS

Durbin Watson Statistic
A number that tests for autocorrelation in the residuals from ... 
Decision Tree
A schematic treeshaped diagram used to determine a course of ... 
Normal Distribution
A probability distribution that plots all of its values in a ... 
Probability Distribution
A statistical function that describes all the possible values ... 
Sampling Error
A statistical error to which an analyst exposes a model simply ... 
Distribution
1. When trading volume is higher than that of the previous day ...
Related Articles

Markets
The Uses And Limits Of Volatility
Check out how the assumptions of theoretical risk models compare to actual market performance. 
Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Fundamental Analysis
What is a Null Hypothesis?
In statistics, a null hypothesis is assumed true until proven otherwise. 
Investing
How to Use Stratified Random Sampling
Stratified random sampling is a technique best used with a sample population easily broken into distinct subgroups. Samples are then taken from each subgroup based on the ratio of the subgroup’s ... 
Fundamental Analysis
Lognormal and Normal Distribution
When and why do you use lognormal distribution or normal distribution for analyzing securities? Lognormal for stocks, normal for portfolio returns. 
Investing Basics
Using Normal Distribution Formula To Optimize Your Portfolio
Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk. 
Technical Indicators
The Normal Distribution Table, Explained
The normal distribution formula is based on two simple parameters  mean and standard deviation 
Economics
Can Investors Trust Official Statistics?
The official statistics in some countries need to be taken with a grain of salt. Find out why you should be skeptical. 
Investing Basics
RSquared
Learn more about this statistical measurement used to represent movement between a security and its benchmark. 
Active Trading Fundamentals
Hypothesis Testing in Finance: Concept & Examples
When you're indecisive about an investment, the best way to keep a cool head might be test various hypotheses using the most relevant statistics.