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 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


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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