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Statistics Formula

This document provides formulas and definitions for key concepts in descriptive statistics, probability, and statistical inference. It defines terms like population, mean, variance, covariance, correlation, and sampling distributions. It also provides formulas and procedures for confidence intervals and hypothesis tests involving means and proportions, including differences between independent and dependent groups.

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Unmilan Kalita
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93 views4 pages

Statistics Formula

This document provides formulas and definitions for key concepts in descriptive statistics, probability, and statistical inference. It defines terms like population, mean, variance, covariance, correlation, and sampling distributions. It also provides formulas and procedures for confidence intervals and hypothesis tests involving means and proportions, including differences between independent and dependent groups.

Uploaded by

Unmilan Kalita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Economics 250 Formula Sheet

Descriptive Statistics
Population
1
N

N

Mean

Variance

2 =

CV

Covariance

xy =

1
N

Correlation

xy =

xy
x y

i=1

1
N

Sample
xi

N

i=1 (xi

x=
)2

s2 =

100

s
x

N

i=1 (xi

1
n

x )(yi y )

n
i=1

1
n1

xi

n

i=1 (xi

x)2

100

sxy =

1
n1

rxy =

sxy
sx sy

n

i=1 (xi

x)(yi y)

Grouped Data
With K classes, with midpoints mi and counts ci , the sample mean is x =
K
K
1
2
variance is s2 = n1
i=1 ci (mi x) , where n =
i=1 ci .

1
n

K

i=1 ci mi ,

and the sample

689599.7 Rule
For a normal distribution 68% of the observations are in 1, 95% are in 2, and almost all (99.7%)
are in 3.
Normal Distribution
For < x <

 (x )2 
f (x) = (2 2 )1/2 exp
2 2
with mean x and standard deviation x , then
x N (x , x )
x x
z=
N (0, 1)
x
Warning: Some people record the normal distribution as N (x , x2 ) i.e. the second number in brackets is
the variance rather than the standard deviation.
Uniform Distribution
For a x b
f (x) =

1
ba

E(x) =

a+b
2

V ar(x) =

Random Variables
Let x be a discrete random variable, then:
x = E(x) =


x

xP (x)

(b a)2
12

x2 =

(x )2 P (x)

The covariance of x and y is:


cov(x, y) = xy = E(x x )(y y ) =


x

The correlation between x and y is:


xy =

(x x )(y y )P (x, y)

xy
x y

For a continuous rv replace the sums by integrals.


Functions of Random Variables
If y = a + bx then:
E(y) = y = a + bx ,
and

y2 = b2 x2 .

If w = cx + dy then:
E(w) = w = cx + dy ,
and

2
w
= c2 x2 + d2 y2 + 2cdxy .

Sampling Distribution of the Sample Mean


For large samples,



x N ,
n

Probability Theory
P (A) = 1 P (A) (complement rule)
P (A B) = P (A) + P (B) P (A B) (addition rule)
P (A B) = P (A|B)P (B) (multiplication rule)
A and B are independent if

P (A B) = P (A)P (B)

Marginal probabilities add entries in a joint probability table. If Bi are mutually exclusive and exhaustive
events then:
n

P (A Bi )
P (A) =
i=1

Bayess Rule:
P (B|A) =

P (A|B)P (B)
P (A)

Binomial Distribution
For a success probability of p and sample size n:
P (x successes) =

n!
px (1 p)nx ,
x!(n x)!

and the discrete random variable x has mean


x = np
and variance

x2 = np(1 p)

Sampling Distribution of the Sample Proportion


For large samples,


p(1 p)
p N p,
n

Inference for Means


1. For large samples, a 100(1 )% CI for is:
(a)

x z/2
n

when the population variance is known to be 2 ;


(b)

s
x tn1,/2
n

when the population variance is unknown but estimated by s2 .


2. Dierences in Means: Dependent Samples
di = x1i y2i ,
n

then

i=1

d=

and
sd =

di

n

d)2
n1

i=1 (di

can be used with tn1,/2 to form a condence interval: d tn1,/2 sd / n.

3. Dierences in Means: Independent Samples


(variances unknown and not assumed equal):

sx1 x2 =

s21
s2
+ 2
n1
n2

can be used with t,/2 and


=

[(s21 /n1 ) + (s22 /n2 )]2


,
(s21 /n1 )2 /(n1 1) + (s22 /n2 )2 /(n2 1)

or often degrees of freedom approximated by the smaller of n1 1 and n2 1.


Inference for Proportions
1. For large samples, a 100(1 )% CI for p is:

p z/2

p(1 p)
.
n

(Or replace p = x/n by p = (x + 2)/(n + 4) when = 1%, 5%, or 10%.)


2. Dierences in Proportions
p1 p2
has standard deviation:

p1 (1 p1 ) p2 (1 p2 )
+
n1
n2

which can be used with z/2 to form a condence interval. (Or add 1 success and 1 failure to each sample
when = 1%, 5%, or 10%.)
3. Testing the Hypothesis of Equal Proportions
For this test, use the pooled estimate of the common value of p1 and p2 :
ppool =
to form
SEDp

X1 + X2
n1 + n2


1
1
= ppool (1 ppool )
+
n1
n2

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