# Business Statistics Formula – Cheat Sheet / Handbook

**Business Statistics Formula Handbook**

**Table of Contents**

**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 tailed**SignType of TestKeyword to look for≠**Two tailed TestOr Not, always, never**< **Left Tailed TestHigher than, More than, Increased**> **Right Tailed TestLower 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 **

**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**

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