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# Business Statistics Formula – Cheat Sheet / Handbook

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 Grouped data

Direct Method: Shortcut Method: Combined Mean: MEDIAN – It is the middle value of an observation

Ungrouped data: 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: Relationship between Mean,Median and Mode ## Measures of Dispersion

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

Ungrouped Data: Grouped Data: Standard Deviation:

Ungrouped Data: Assumed Mean Method: Grouped Data: S.D. of Natural Numbers:  Variance: Relationship between Measures of Variation: ## Correlation

Karl Pearson`s Co-efficient Method: In case of Grouped data: Spearman`s Rank Coefficient: ## Regression Analysis

Regression Equation of Y on X: Regression Equation of X on Y: If deviations are taken from mean: If deviations are taken from assumed mean: Regression Coefficients:  Relation between coefficient of correlation and two regression coefficients: ## Index numbers  ## Sampling

Sample size determination:

Mean: Proportion: ## Test of Hypothesis

Null Hypothesis – Ho

Alternate Hypothesis – H1

Size of Sample – n

Types of Tests – One tailed, Two Tailed, Right tailed, Left tailedSignType of TestKeyword to look for≠Two tailed TestOr Not, always, neverLeft Tailed TestHigher than, More than, IncreasedRight Tailed TestLower than, Less than, Decreased

Process:

1. Formulate the hypothesis

2. Set the significance level

3. Decide the Test Statistic (z,t)

4. Find out the critical value

5. 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 Difference of two mean Counting Proportion Difference of two Proportions Calculation of T statistic:

Mean: Difference in two mean Difference of two means with dependent samples ## Chi Square Test  ## Interpolation ## Extrapolation ### Recent Posts

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