Business Statistics Formula – Cheat Sheet / Handbook

Business Statistics Formula Handbook

Table of Contents

Measures of Central Tendency

Measures of Dispersion

Correlation

Regression

Sampling

Test of Hypothesis

Chi-Square Test

Index Numbers

Interpolation

Extrapolation


Measures of Central Tendency – MEAN, MEDIAN, MODE

MEAN – It is the average of a given set of observation.

Ungrouped data

ungrouped-mean

Grouped data

Direct Method:

grouped-direct-mean

Shortcut Method:

mean-shortcut-method

Combined Mean:

combined-mean

 

MEDIAN – It is the middle value of an observation

Ungrouped data:

median-ungrouped-data

Grouped data:

median-grouped-data

MODE – It is the value which occur the maximum number of times in a data

Ungrouped data:

Mode is the value which has the highest frequency.

 

Grouped data:

mode-grouped-data

Relationship between Mean,Median and Mode

relationship-between-mean-median-mode

Measures of Dispersion

Range: It is the difference between the value of smallest observation and largest observation in a data.

range-coefficient-of-range

Quartile Deviation:

quartile-deviation

Average Deviation:

Ungrouped Data:

average-deviation-ungrouped-data

Grouped Data:

average-deviation-grouped-data

Standard Deviation:

Ungrouped Data:

standard-deviation

Assumed Mean Method:

standard-deviation-assumed-mean

Grouped Data:

standard-deviation-grouped-data

S.D. of Natural Numbers:

standard-deviation-of-natural-numbers

coefficient-of-standard-deviation

Variance:

varience-coefficient-of-variation

Relationship between Measures of Variation:

relatioship-between-measures-of-dispersion

Correlation

Karl Pearson`s Co-efficient Method:

karl-pearsons-coefficient-of-correlation

In case of Grouped data:

correlation-assumed-mean-method

 

Spearman`s Rank Coefficient:

spearmans-rank-coefficient

Regression Analysis

Regression Equation of Y on X:

regression-equation-y-on-x

 

 

Regression Equation of X on Y:

regression-equation-x-on-y

 

If deviations are taken from mean:

regression-from-mean

 

If deviations are taken from assumed mean:

regression-from-assumed-mean

Regression Coefficients:

regression-coefficient-of-y-on-x

regression-coefficient-of-x-on-y

Relation between coefficient of correlation and two regression coefficients:

relation-between-correlation-and-regression

Index numbers


index-numbers

index-numbers-formula

Sampling


Sample size determination:

Mean:

sample-size-determination-mean

Proportion:

 

sample-size-determination-proportion

Test of Hypothesis


Null Hypothesis – Ho

Alternate Hypothesis – H1

Size of Sample – n

Types of Tests – One tailed, Two Tailed, Right tailed, Left tailed

Sign Type of Test Keyword to look for
Two tailed Test Or Not, always, never
Left Tailed Test Higher than, More than, Increased
Right Tailed Test Lower than, Less than, Decreased

Process:

  • Formulate the hypothesis
  • Set the significance level
  • Decide the Test Statistic (z,t)
  • Find out the critical value
  • Make a conclusion

Use Z statistic when sample size is > 30

Use T statistic when sample size is < 30 and/or Standard Deviation is Unknown

 

Calculation of Z statistic

Mean

z-statistic-mean

Difference of two mean

z-statistic-difference-of-two-means

Counting 

z-statistic-counting

Proportion

z-statistic-proportion

Difference of two Proportions

z-statistic-difference-of-two-proportions

Calculation of T statistic:

Mean:

t-statistic-mean

Difference in two mean

t-statistic-difference-of-two-mean

Difference of two means with dependent samples

t-statistic-dependant-samples

Chi Square Test


chi-square-test

table-of-expected-frequencies

Interpolation


interpolation

Extrapolation


extrapolation

 

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