Probability Distributions

μ=∑ xP( x)

σ 2=∑ ( x−μ )2 P ( x )=∑ x 2 P ( x )−μ2

Binomial Distributions

If X is Binomial(n,p) then P ( X=k )=❑nC k p k (1− p)n−k

❑ n!
Where nC k = and n !=n ( n−1 )( n−2 ) … (2 )(1)
k !(n−k) !

The mean of X is np and the standard deviation of X is √ np(1−p)

If X is a binomial random variable with parameters n and p, then X is approximately normal with
mean np and standard deviation √ np(1−p), as long as np ≥ 5 and n(1− p)≥ 5.

Normal Distributions

X−μ
If X is normal with mean µ and standard deviation σ then Z= is normal with mean 0 and
σ
standard deviation 1.

Central Limit Theorem

If X has mean µ and standard deviation σ then given n independent observations, X is

σ
approximately normally distributed with mean µ and standard deviation , as long as either X
√n
is normal, or n ≥ 30.

Confidence Intervals
^p ( 1− ^p ) ^p (1−^p )
^p−z α /2
√ n
< p< ^p + zα /2
√ n

σ σ
x́−z α / 2 < µ< x́ + z α / 2
√n √n

s s
x́−t α / 2 < µ< x́ +t α / 2
√n √n
( n−1 ) s 2 2 ( n−1 ) s 2
<σ <
χ 2R χ 2L
 α
P ( Z > z α /2 )=1−
2

α
P ( T >t α /2 )=
2

α α
P ( χ 2 > χ 2R ) = 2 2
and P ( χ > χ L ) =1−
2 2

2
[z ¿¿ α /2]2 0.25 [z ¿¿ α /2] ^p (1− ^p )
n≥ 2
¿ or n ≥ ¿
E E2
2
z σ
[ ]
n ≥ α /2
E

Test Statistics

^p −p 0
z s=
p0 (1− p0 )
√ n

x́−µ0
z s=
σ
√n
x́−µ0
t s=
s
√n

2 (n−1) s 2
χ=
s
σ 20