Formula Sheet-1
Covers materials from Chapters 4, 5, 6 and 7
You are welcome to add explanatory material to the formula sheet
(e.g. µ stands for population mean)
Notice a missing formula? Bring it to my attention (kher@[Link]),
and add to the formula sheet
Arithmetic Mean:
N
∑ Xi
i =1
Population Mean: μ=
N
(N = number of observations or population size; Xi = ith observation of the variable X)
n
∑ Xi
i =1
Sample Mean: X=
n
(n = number of observations or sample size; Xi = ith observation of the variable X)
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Geometric Mean:
Method of growth factors
1/ n
RG = (1 + R1 ) × (1 + R2 ) × × (1 + Rn ) −1
R’s are expressed on a decimal scale – e.g. 10% is 0.1; 100% is 1.0, etc.
Method with raw data
In the above formula, X1 is the first data value, Xn is the final (nth) data value
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Range = Xl arg est − Xsmallest
Interquartile range = Q3 – Q1
n +1
Q1= first quartile = value corresponding to the ordered observation;
4
3(n + 1)
Q3= third quartile = value corresponding to the ordered observation.
4
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1
N
∑ (X i − μ )2
Variance of a population σ 2 = i =1
N
N
∑ (X − μ)
2
i
Standard deviation of the population σ = σ 2 = i =1
N
(µ = population arithmetic mean; N = population size; Xi = ith value of the variable X)
n
∑ (X i − X )
2
Variance of a sample s2 = i =1
n −1
n
∑ (X i − X )
2
Standard deviation of the sample s = s 2 = i =1
n −1
( X = sample arithmetic mean; n = sample size; Xi = ith value of the variable X)
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s
Coefficient of Variation CV = × 100%
X
(s = standard deviation of a set of data; X = sample mean)
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Probability
The probability of either event A or B occurring:
1. Events A and B are mutually exclusive: P(A or B) = P(A ) + P(B)
2. Events A and B are NOT mutually exclusive: P(A or B) = P(A ) + P(B) − P(A and B)
• The conditional probability of event B occurring, given that event A has occurred:
P(A and B)
P(B A ) =
P(A )
• The probability of both event A and B occurring:
1. Events A and B are independent: P(A and B) = P(A ) × P(B)
2. Events A and B are NOT independent:
P(A and B) = P(A ) × P(B A ) or P(A and B) = P(B) × P(A B)
2
Discrete Random Variables
The expected value of a discrete random variable X:
N
μ = E(X ) = ∑ X i P(X i )
i =1
(X = random variable of interest; Xi = ith outcome of X; P(Xi) = probability of occurrence of the ith
outcome of X; N = the number of outcomes for X)
Variance and Standard deviation of a discrete random variable X:
N N
σ 2x = ∑ (X i − μ x )2 P(X i ) σx = ∑ (X i − μ x )2 P(X i )
i =1 i =1
(X= discrete random variable of interest; Xi = ith outcome of X; P(Xi) = probability of occurrence of
the ith outcome of X; N = the number of outcomes for X;
µ = E(X) = expected or average value of X)
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The Normal Distribution
X−μ
Standard normal score: Z =
σ
Related formulae:
X−μ
X = μ + Zσ σ= μ = X - Zσ
Z
µ=mean of the normal distribution
σ=standard deviation of the normal distribution
X=the value that is to be standardized (normalized)
Z=the distance of X from the mean, measured in the number of standard deviations