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

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, never< Left Tailed TestHigher than, More than, Increased> Right 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

#Businessstatisticsallformulas #Businessstatisticscheatsheat #Businessstatisticsguide #BusinessstatisticsHandbook