Gujarat Technological University

GUJARAT TECHNOLOGICAL UNIVERSITY

STATISTICAL FORMULA
for
 MBA
 MBA (Part Time)
 MBA (Integrated)
 MBA (International Business)

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1. Descriptive Statistics:

Population mean ∑ 𝑥𝑖
(ungrouped) 𝜇=
𝑁
Sample mean ∑ 𝑥𝑖
(ungrouped) 𝑥̅ =
𝑛
Grouped Mean ∑ 𝑓𝑖 𝑀𝑖
𝜇grouped =
𝑁
Grouped Median 𝑁
− 𝑐𝑓𝑝
Median = L + 2 (𝑊 )
𝑓𝑚𝑒𝑑
Grouped Quartile 𝑖𝑁
− 𝑐𝑓𝑝
𝑄𝑖 = L + 4 (𝑊 )
𝑓𝑄𝑖

Grouped Mode 𝑓𝑚𝑜𝑑𝑒 − 𝑓1

Mode = L + (𝑊 )
2𝑓𝑚𝑜𝑑𝑒 − 𝑓1 − 𝑓2
Range Range = Highest Value – Lowest Value
Interquartile Range 𝐼𝑄𝑅 = 𝑄3 − 𝑄1
Mean Absolute ∑|𝑥𝑖 − 𝜇|
Deviation MAD =
N
Population standard
∑(𝑥𝑖 − 𝜇)2
deviation (ungrouped) 𝜎 = √𝜎 2 𝜎= √
𝑁
2
(∑ 𝑥𝑖 )
∑ 𝑥𝑖2 − ∑ 𝑥𝑖2 − 𝑁𝜇 2
𝜎= √ 𝑁
𝜎= √
𝑁 𝑁
Population variance ∑(𝑥𝑖 − 𝜇)2
(ungrouped) 𝜎2 =
𝑁
2
(∑ 𝑥𝑖 )
∑ 𝑥𝑖2 −
𝜎2 = 𝑁
𝑁
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∑ 𝑥𝑖2 − 𝑁𝜇 2
𝜎2 =
𝑁
Population variance (∑ 𝑓𝑖 𝑀𝑖 )2
(grouped) ∑ 𝑓𝑖 (𝑀𝑖 − 𝜇) 2 ∑ 𝑓𝑖 𝑀𝑖 2 −
𝜎2 = = 𝑁
𝑁 𝑁

Population standard (∑ 𝑓𝑖 𝑀𝑖 )2
2
deviation (grouped) ∑ 𝑓𝑖 (𝑀𝑖 − 𝜇)2 ∑ 𝑓
√ 𝑖 𝑖 𝑀 −
𝜎= √ = 𝑁
𝑁 𝑁
Sample variance 2 (∑ 𝑥𝑖 )2
∑(𝑥𝑖 − 𝑥̅ ) 2 ∑ 𝑥𝑖 − ∑ 𝑥𝑖 2 − 𝑛(𝑥̅ )2
2
𝑠 = = 𝑛 =
𝑛−1 𝑛−1 𝑛−1
Sample Standard 2
2 ∑ 𝑥 2 − (∑ 𝑥𝑖 )
deviation ∑(𝑥 𝑖 − 𝑥̅ ) √ 𝑖 𝑛
𝑠 = √𝑠 2 = √ =
𝑛−1 𝑛−1

∑ 𝑥𝑖 2 − 𝑛(𝑥̅ )2
=√
𝑛−1
Chebyshev’s theorem 1
1−
𝑘2
z score 𝑥𝑖 − 𝜇
𝑧=
𝜎
Coefficient of 𝜎
variation 𝐶𝑉 = 100
𝜇
Sample variance 2
(grouped) (∑ 𝑓𝑖 𝑀𝑖 )
∑(𝑀𝑖 − 𝑥̅ )2 ∑ 𝑓𝑖 𝑀𝑖 2 −
2 𝑁
𝑠 = =
𝑛−1 𝑛−1
Sample standard (∑ 𝑓𝑖 𝑀𝑖 )2
2
deviation (grouped) ̅ )2
∑(𝑀𝑖 − 𝑥 ∑ 𝑓
√ 𝑖 𝑖𝑀 −
𝑠= √ = 𝑁
𝑛−1 𝑛−1
Pearson coefficient of 3(𝜇 − 𝑀𝑖 )
skewness 𝑆𝑘 =
𝜎

2. Probability:
Counting rule Mn
sampling with 𝑁𝜂
replacement
sampling N𝐶𝑛
without
replacement
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Combination N N!
formula NCn= ( ) =
n n! (N − n)!
General law of 𝑃(𝑋 ⋃ 𝑌) = 𝑃(𝑋) + 𝑃(𝑌) − 𝑃(𝑋 ⋂ 𝑌)
addition
Special law of 𝑃(𝑋 ⋃ 𝑌) = 𝑃(𝑋) + 𝑃(𝑌)
addition
General law of 𝑃(𝑋 ⋂ 𝑌) = 𝑃(𝑋) × 𝑃(𝑌|𝑋) = 𝑃(𝑌) × 𝑃(𝑋|𝑌)
multiplication
Special law of 𝑃(𝑋 ⋂ 𝑌) = 𝑃(𝑋) × 𝑃(𝑌)
multiplication
Law of 𝑃 (𝑋 ⋂ 𝑌) 𝑃(𝑋) × 𝑃(𝑌|𝑋)
conditional 𝑃(𝑋|𝑌) = =
probability 𝑃(𝑌) 𝑃(𝑌)
Bayes Rule 𝑃(𝑋𝑖 |𝑌)
𝑃(𝑋𝑖 ) × 𝑃(𝑌|𝑋𝑖 )
=
𝑃(𝑋1 ) × 𝑃(𝑌|𝑋1 ) + 𝑃(𝑋2 ) × 𝑃(𝑌|𝑋2 ) + … . . +𝑃(𝑋𝑛 ) × 𝑃(𝑌|𝑋𝑛 )
<

3. Probability Distribution:
Mean (expected) value of
a discrete distribution 𝜇 = 𝐸(𝑥) = ∑[𝑥 × 𝑃(𝑥)]
Variance of a discrete
distribution 𝜎 2 = ∑[(𝑥 − 𝜇)2 × 𝑃(𝑥)]
Standard deviation of a
discrete distribution 𝜎 = √∑[(𝑥 − 𝜇)2 × 𝑃(𝑥)]
Poisson formula 𝜆𝑥 𝑒 −𝜆
𝑃(𝑥) =
𝑥!
Binomial formula 𝑛!
(𝑛𝑥) × 𝑝 𝑥 × 𝑞 𝑛−𝑥 = × 𝑝 𝑥 × 𝑞 𝑛−𝑥
𝑥! (𝑛−𝑥)!
Mean of binomial 𝜇 =𝑛 ×𝑝
distribution
Standard deviation of a 𝜎 = √𝑛 × 𝑝 × 𝑞
binomial distribution
Mean and standard 𝑎+𝑏 𝑏−𝑎
deviation of a uniform 𝜇= 𝜎=
distribution <
2 √12
Probability distribution |𝑥1 − 𝑥2 |
for uniform distribution 𝑃(𝑥) =
|𝑏 − 𝑎|
z formula 𝑥− 𝜇
𝑧=
𝜎

4. Parametric tests:

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z test for a single mean 𝑥̅ − 𝜇
𝑧= 𝜎
√𝑛
z test for a population proportion 𝑝̂ − 𝑝
𝑧=
𝑝 ×𝑞
√
𝑛
Formula to test hypothesis about 𝑥̅ − 𝜇
µ with a finite population 𝑧=
𝜎 √𝑁 − 𝑛
√𝑛 𝑁 − 1
Formula for testing hypothesis
2
(𝑛 − 1)𝑠 2
about a population variance 𝜒 = , 𝑑𝑓 = 𝑛 − 1
𝜎2
t test for a single mean 𝑥̅ – 𝜇
𝑡= 𝑠 , 𝑑𝑓 = 𝑛 − 1
√𝑛
z test for the difference in two (𝑥 𝑥2 − (𝜇1 − 𝜇2 )
̅̅̅1 − ̅̅̅)
independent sample means 𝑧=
𝜎12 𝜎22
√ +
𝑛1 𝑛2
t test for two independent sample means, and population variances unknown but assumed to be equal
(assume also that the two populations are normally distributed)
(𝑥̅1 − 𝑥̅2 ) − (𝜇1 − 𝜇2 )
𝑡= , 𝑑𝑓 = 𝑛1 + 𝑛2 − 2
𝑠 2 (𝑛 − 1) + 𝑠22 (𝑛2 − 1) 1 1
√ 1 1 √ +
𝑛1 + 𝑛2 − 2 𝑛1 𝑛2
t test for difference in two related samples (the differences are normally distributed in the
population)
2
̅ ̅ 2
∑ 𝑑 2 − (∑ 𝑑)
𝑑 − 𝐷 ∑𝑑 ∑(𝑑 − 𝑑) √ 𝑛
𝑡= 𝑠𝑑 ; 𝑑𝑓 = 𝑛 − 1, 𝑑̅ = , 𝑆𝑑 = √ =
𝑛 𝑛−1 𝑛−1
√𝑛
z formula for testing the difference in population proportions

(𝑝̂1 − 𝑝̂ 2 ) − (𝑝1 − 𝑝2 ) 𝑥1 + 𝑥2 𝑛1 𝑝̂1 + 𝑛2 𝑝̂2

𝑧= 𝑤ℎ𝑒𝑟𝑒 𝑝̅ = = , 𝑞̅ = 1 − 𝑝̅
1 1 𝑛1 + 𝑛2 𝑛1 + 𝑛2
̅̅̅̅̅̅̅̅
√(𝑝̅ × 𝑞̅ ) (𝑛 + 𝑛 )
1 2
F test for two population variances (assume the two populations are normally distributed)
𝑠12
𝐹= 2 𝑑𝑓𝑛𝑢𝑚𝑒𝑟𝑎𝑡𝑜𝑟 = 𝑣1 = 𝑛1 − 1, 𝑑𝑓𝑑𝑒𝑛𝑜𝑚𝑖𝑛𝑎𝑡𝑜𝑟 = 𝑣2 = 𝑛2 − 1
𝑠2
Formula for determining the critical value for the lower-tail F
1
𝐹1−𝛼,𝑣2 ,𝑣1 =
𝐹𝛼,𝑣1 ,𝑣2

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Pearson’s Product moment correlation coefficient
(∑ 𝑥 ∑ 𝑦)
∑(𝑥 − 𝑥̅ )(𝑦 − 𝑦̅) ∑ 𝑥𝑦 −
𝑟= = 𝑛
√∑(𝑥 − 𝑥̅ )2 ∑(𝑦 − 𝑦̅)2 (∑ 𝑥)2 (∑ 𝑦)2
√[∑ 𝑥 2 − ∑ 2
𝑛 ][ 𝑦 − 𝑛 ]
Equation of the simple regression line
𝑦̂ = 𝛽0 + 𝛽1 𝑥
Sum of Squares
(∑ 𝑥)2
2 2
(∑ 𝑦)2 ∑𝑥∑𝑦
𝑆𝑆𝑥𝑥 = ∑𝑥 − , 𝑆𝑆𝑦𝑦 = ∑ 𝑦 − , 𝑆𝑆𝑥𝑦 = ∑ 𝑥𝑦 −
𝑛 𝑛 𝑛
Slope of the regression line
(∑ 𝑥)(∑ 𝑦)
∑(𝑥 − 𝑥̅ )(𝑦 − 𝑦̅) ∑ 𝑥𝑦 − 𝑛𝑥̅ 𝑦̅ ∑ 𝑥𝑦 −
𝑏1 = = = 𝑛
∑(𝑥 − 𝑥̅ )2 ∑ 𝑥 2 − 𝑛𝑥̅ 2 (∑ 𝑥)2
∑ 𝑥2 −
𝑛
y-intercept of the regression line
∑𝑦 (∑ 𝑥)
𝑏0 = 𝑦̅ − 𝑏1 𝑥 = − 𝑏1
𝑛 𝑛
Sum of squares of error
𝑆𝑆𝐸 = ∑(𝑦 − 𝑦̂)2 = ∑ 𝑦 2 − 𝑏0 ∑ 𝑦 − 𝑏1 ∑ 𝑥𝑦
Standard error of the estimate
𝑆𝑆𝐸
𝑠𝑒 = √𝑛−2

Coefficient of determination
𝑆𝑆𝐸 𝑆𝑆𝐸
𝑟2 = 1 − =1−
𝑆𝑆𝑦𝑦 (∑ 𝑦)2
∑ 𝑦2 −
𝑛
Computation formula for r2

𝑏1 2 𝑆𝑆𝑥𝑥
2
𝑟 =
𝑆𝑆𝑦𝑦
One Way ANOVA
𝐶 𝑛𝑗 𝐶 𝑛𝑗 𝐶
2 2 2
𝑆𝑆𝐶 = ∑ 𝑛𝑗 (𝑥̅𝑗 − 𝑥̅ ) , 𝑆𝑆𝐸 = ∑ ∑(𝑥𝑖𝑗 − 𝑥̅𝑗 ) , 𝑆𝑆𝑇 = ∑ ∑(𝑥𝑖𝑗 − 𝑥̅ )
𝑗=1 𝑖=1 𝑗=1 𝑖=1 𝑗=1

𝑑𝑓𝑐 = 𝐶 − 1, 𝑑𝑓𝐸 = 𝑁 − 𝐶, 𝑑𝑓𝑇 = 𝑁 − 1

𝑆𝑆𝐶 𝑆𝑆𝐸 𝑀𝑆𝐶
𝑀𝑆𝐶 = , 𝑀𝑆𝐸 = , 𝐹=
𝑑𝑓𝑐 𝑑𝑓𝐸 𝑀𝑆𝐸

5. Non-parametric tests:
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Chi-square goodness of fit (𝑓𝑜 − 𝑓𝑒 )2

𝜒2 = ∑ , df = k – 1 – c
𝑓𝑒

Chi-square test of independence (𝑓𝑜 − 𝑓𝑒 )2

𝜒2 = ∑ ∑ , df = (r – 1) (c – 1)
𝑓𝑒
Spearman’s Rank correlation 6 ∑ 𝑑2
𝑟𝑠 = 1 −
𝑛(𝑛2 − 1)
Mann Whitney U test 𝑛1 (𝑛1 + 1)
Small sample – 𝑈1 = 𝑛1 𝑛2 + − 𝑊1
2
𝑛2 (𝑛2 + 1)
𝑈2 = 𝑛1 𝑛2 + − 𝑊2
2

𝑈 ′ = 𝑛1 × 𝑛2 − 𝑈
Mann Whitney U test 𝑛1 × 𝑛2
Large sample – 𝜇𝑈 =
2

𝑛1 𝑛2 (𝑛1 + 𝑛2 + 1)
𝜎𝑈 = √
12

𝑈 − 𝜇𝑈
𝑧=
𝜎𝑈
Wilcoxon matched-pair signed
rank test (𝑛)(𝑛 + 1)
𝜇𝑇 =
4

(𝑛)(𝑛 + 1)(2𝑛 + 1)
𝜎𝑇 = √
24

𝑇 − 𝜇𝑇
𝑧=
𝜎𝑇
Kruskal-Wallis test 𝑐
12 𝑇𝑗2
𝐾= (∑ ) − 3(𝑛 + 1)
𝑛(𝑛 + 1) 𝑛𝑗
𝑗=1
𝑐
Friedman test 12
𝜒𝑟2 = ∑ 𝑅𝑗2 − 3𝑏(𝑐 + 1)
𝑏𝑐(𝑐 + 1)
𝑗=1

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