I thought that the sample distribution was an approximation of the distribution of the underlying phenomenon.
But then the book says:
We will denote the sample size by $n$ ($n \le N$) and the values of the sample members by $X_1, X_2, \dots , X_n$. It is important to realize that each $X_i$ is a random variable. In particular, $X_i$ is not the same as $x_i$ : $X_i$ is the value of the $i$-th member of the sample, which is random and $x_i$ is that of the $i$-th member of the population, which is fixed.
I don't understand this distinction. I thought that also $x_i$ should be considered as random; after all, they are all realizazion from an underlying probability distribution. So even the population mean $\mu = \frac 1N\sum x_i$ must be seen as a random variable.
Then I realized we were talking about different experiment (ie the $x_i$ will be considered random when the population is created (so to speak) while will be considered constant and fixed in the contest of the survey we are performing).
Take a look at $Var \ \bar X = \frac{\sigma^2}n\left(\frac{N-n}{N-1}\right)$ If $N=n$, it implies $Var \ \bar X = 0$, that is, if we interview all the population we will find that $\bar X$ is really a constant ($= \mu$).. this brings me to the question:
The sample distribution then is the distribution of what? Apparently isn't the distribution of the underlying phenomenon, but the distribution that arise as having $x_i$ realization and taking a random $n$ between them.. without asking where the $x_i$ come from.
So the sample distribution must be used only as a measure of the accuracy of $\bar X$ to estimate $\mu$, but neither $\bar X$ nor $\mu$ can be seen as estimates of what we really want, that is the $E(Y)$, where the distribution of $Y$ (the underlying distribution for all the population) is what we care about.
I suppose one can do pretty much the same reasoning and conclude that $\mu$ is an unbiased estimator for $E(Y)$ and maybe try to derive it's variance, but then it's not clear to me how to connect all of this with what we actually have ($X_i$).
Also, I think this point should be made more explicit (if it's correct, that is), because it was a source of confusion for me.