IMPORTANT RULES

∑𝐱
Mean = ( discrete data )
𝒏

∑ 𝒇𝒙
Mean = ( continuous data )
∑𝒇

∑(𝒙−𝒙)𝟐 ∑ 𝒙𝟐
Variance = = −(
∑𝒙 𝟐
) (discrete data)
𝒏 𝒏 𝒏

∑ 𝒇(𝒙−𝒙)𝟐 ∑ 𝒇𝒙𝟐 𝟐
Variance =
∑𝒇
or ∑𝒇
−( ∑
∑ 𝒇𝒙
𝒇
) (continuous data)

Standard deviation = δ = √𝑽𝒂𝒓𝒊𝒂𝒏𝒄𝒆

i. You can use the measures of location

Mode = median = mean or 𝑸𝟐 - 𝑸𝟏 = 𝑸𝟑 - 𝑸𝟐 (symmetrical)

Mode < median < mean or 𝑸𝟐 - 𝑸 𝟏 < 𝑸𝟑 - 𝑸𝟐 (positive skew)

Mode > median > mean or 𝑸𝟐 - 𝑸𝟏 > 𝑸𝟑 - 𝑸𝟐 (negative skew)

• Adding or subtracting numbers does not change the standard

deviation of the data
• Multiplying or dividing the data by a number does affect
the standard deviation.
 P (A  B) = P (A) + P (B) - P (A  B)

P (A  B) = P (A) + P (B) - P (A  B)

P (A’) = 1 - P (A)

P (A  B)’ = P (A’  B’)

P (A  B)’ = P (A’  B’)

P (A  B’) = P (A) - P (A  B)

P (A’  B) = P (B) - P (A  B)
𝑷( 𝑩  𝐀)
P (B│A) =
𝑷 (𝑨)

Mutually exclusive and independent events

When events have no outcomes in common,they are mutually exclusive

• To find the probability of one of two mutually

exclusive events occurring, use the following formula:

P(A  B) = P(A) + P(B) – P(A  B)

If A and B are mutually exclusive, then P(A  B) = 0

Page 2 of 8
• When one event has no effect on anther, they are independent.
Therefore if A and B are independent, the probability is the same
whether or not B has happened
P (A) = P (A│B)
We can use the formula for conditional probability to give
𝐏( 𝐁  𝐀)
= P (A)
𝐏 (𝐀)
• The multiplication rule applied to independent events
P(A  B) = P(A) x P (B)

Page 3 of 8
If you treat 𝑺𝒚𝒚 , 𝑺𝒙𝒚

in
a similar way you get

Page 4 of 8
 Correlation coefficient r (-1≤r≤1)
You can use get a measure of the amount of correlation between
two variables by using the product moment correlation coefficient r

• The product moment correlation coefficient “r” is not

affected by coding or changing units .
• Variance and S are affected by coding
(multiplication or division) and changing units affect
• Give an interpretation of your coefficient.
a) If it is +ve so both variables will increase together

b) If it is -ve so one variable increase causes decrease of the other

Independent and dependent variables

• An independent (or explanatory) variable is a type of

independent variable. It is plotted along the x-axis.
• A dependent (or response) variable is one whose values
are determined by the values of the independent
variable. It is plotted along the y-axis.

The equation of the regression line of y on x is y = a+bx where

𝐒𝐱𝐲
b= and a = 𝐲̅ - b𝐱̅
𝐒𝐱𝐱

Page 5 of 8
• Interpolation is when you estimate the value of the dependent
variable within the range of the data .
• Extrapolation is when you estimate a value outside the range of the
data. Values estimated by extrapolation can be unreliable.

For a discrete random variable the sum of all probabilities must add up to one.
∑ 𝐩(𝐱) = ∑ 𝐩(𝐗 = 𝐱) = 1 for all values of x.

E(X) =∑ 𝒙𝑷(𝑿 = 𝒙) = ∑ 𝒙𝒑(𝒙)

Finding an expected value for X2 General rule : E(Xn) =∑ 𝒙𝒏 𝑷(𝑿 = 𝒙)

Var(X) = E(Xn) – (E(X))2

E(aX+b) = aE(X)+b Var(aX+b) = a2Var(X)

discrete uniform distribution

𝒏+𝟏 (𝒏+𝟏)(𝒏−𝟏)
E(X) = , Var(X) =
𝟐 𝟏𝟐

Example: Using the standard normal tables find

a) P(Z<0.85) b) P(Z>0.85)

P (Z>a) = 1 - φ(a)
Page 6 of 8
 Example: Find P (Z<-1), consider these diagrams

P(Z<-1)= P(Z>1) = 1 – φ(1) = 1-0.8413 = 0.1587

P (Z<-a) = φ(-a) = 1 - φ(a)

Example: Find P (Z>-1), consider these diagrams

P(Z>-1) = φ(1) = 0.8413

P(Z>-a) = φ(a)

Example: if Z ~N(0,1) find

a) P(0.345<Z<1.751)
P(0.345<Z<1.751) = φ(1.751) - φ(0.345) = 0.3250

P(a<Z<b) = φ(b) - φ(a)

b) P(-2.696<Z<1.865)
P(-2.696<Z<1.865) = φ(1.865) - φ(-2.696)

Page 7 of 8
 = φ(1.865) – ( 1 - φ(2.696)) = φ(1.865)+
φ(2.696)+1=0.9655
P(-a<Z<b) = φ(b) - φ(a) = φ(b) – (1- φ(a)) = φ(b) + φ(a) -1

c) P(-1.4<Z<-0.6)
P(-1.4<Z<-0.6) = φ(-0.6) - φ(-1.4)

= ( 1 - φ(0.6)) - ( 1 - φ(1.4)) = φ(1.4) - φ(0.6) = 0.1935

P(-a<Z<-b) = φ(a) - φ(b)

Example: If Z ~N(0,1) show that

a) P(-1.96<Z<1.96) = 0.95

P(-1.96<Z<1.96) = 2φ(1.96)-1 = 2(0.975) -1 = 0.95

b) P(-2.575<Z<2.575) = 0.99

P(-2.575<Z<2.575) = 2φ(2.575)-1 = 2(0.995) -1 = 0.99

P(-a<Z<a) = 2φ(a) -1

Page 8 of 8