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 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:
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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