Full-time M.B.A.

Business Statistics (BST510):

STATISTICAL FORMULAE

These formula sheets & statistical tables will be provided along with the examination paper. The
purpose of this is to make the examination less of a memory test, and more an exercise to examine
your skills in using the techniques. However, this does not mean the sheet covers absolutely every
calculation on which you could be examined. In addition the sheet may contain formulae outside of
those in the course.

Sample Mean for ungrouped data:

Mean for grouped data:

Standard deviation for ungrouped data:

Standard deviation for grouped data:

If you consider your data to be a sample rather than the population, SD is given as:

Coefficient of variation: SD / Mean

The lower quartile (Q1) is found at Rank (n + 1)/4

The median (Md or Q2) is found at Rank 2(n + 1)/4 = (n + 1)/2

The upper quartile (Q3) is found at Rank 3(n + 1)/4

Inter-quartile range: Q3 - Q1

Bowley’s coefficient of skewness: [(Q3 – Median) – (Median -Q1)] / (Q3 - Q1)

Pearson’s coefficient of skewness: 3(Mean – Median) / SD

1
Measures of Association

Spearman’s coefficient of rank correlation (Rho)

Pearson’s correlation coefficient:

Contingency tables: Test of independence

is the Chi-squared statistic with (r – 1)(c – 1) degrees of freedom.

Cramer’s Contingency Coefficient: Cramer’s V

Regression Analysis

Ordinary least squares regression line is: Y = a + bX

a is obtained from the following equation:

Coefficient of determination (R2) in the simple bi-variate case R2 = r2.

2
Probability and Probability Distributions

Addition rule: P(A or B) = P(A) + P(B) – P(A and B)

Multiplication rule: P(A and B) = P(A) x P(B|A)

Expected value: Value of outcome x Probability of outcome (summed over i)

Binomial distribution:

Binomial distribution, mean () = np, and the standard deviation () = .

Poisson distribution:

Poisson distribution, mean = , and the standard deviation () =

Standardised Normal Distribution (Z):

is Normally distributed with a mean of zero ( = 0), standard deviation of one ( = 1).

Normal Approximation of the Binomial Distribution:

Estimation, and Confidence Intervals

Standard error of the mean:  /

Standard error of a proportion:

Confidence interval for mean: (large samples):

Confidence interval for a proportion:

3
Confidence interval for mean: (small samples):

Testing Hypotheses

Testing a population mean (one sample means test):

Testing a population proportion (one sample proportions test):

Statistical Tables

 Significance of Pearson’s correlation coefficient.

 Normal distribution.
 Chi-squared distribution.

PB (10.2016)

4
Chi-squared Distribution Tables – values of   where  is the area or probability in the
2

upper tail of the chi-squared distribution for different number of degrees of freedom (v).

2
Area in upper tail ()

Degrees of
freedom 0.900 0.750 0.500 0.250 0.100 0.050 0.025 0.010 0.005
1 0.016 0.102 0.455 1.323 2.706 3.841 5.024 6.635 7.879
2 0.211 0.575 1.386 2.773 4.605 5.991 7.378 9.210 10.597
3 0.584 1.213 2.366 4.108 6.251 7.815 9.348 11.345 12.838
4 1.064 1.923 3.357 5.385 7.779 9.488 11.143 13.277 14.860
5 1.610 2.675 4.351 6.626 9.236 11.070 12.832 15.086 16.750
6 2.204 3.455 5.348 7.841 10.645 12.592 14.449 16.812 18.548
7 2.833 4.255 6.346 9.037 12.017 14.067 16.013 18.475 20.278
8 3.490 5.071 7.344 10.219 13.362 15.507 17.535 20.090 21.955
9 4.168 5.899 8.343 11.389 14.684 16.919 19.023 21.666 23.589
10 4.865 6.737 9.342 12.549 15.987 18.307 20.483 23.209 25.188
11 5.578 7.584 10.341 13.701 17.275 19.675 21.920 24.725 26.757
12 6.304 8.438 11.340 14.845 18.549 21.026 23.337 26.217 28.300
13 7.041 9.299 12.340 15.984 19.812 22.362 24.736 27.688 29.819
14 7.790 10.165 13.339 17.117 21.064 23.685 26.119 29.141 31.319
15 8.547 11.036 14.339 18.245 22.307 24.996 27.488 30.578 32.801
16 9.312 11.912 15.338 19.369 23.542 26.296 28.845 32.000 34.267
17 10.085 12.792 16.338 20.489 24.769 27.587 30.191 33.409 35.718
18 10.865 13.675 17.338 21.605 25.989 28.869 31.526 34.805 37.156
19 11.651 14.562 18.338 22.718 27.204 30.144 32.852 36.191 38.582
20 12.443 15.452 19.337 23.828 28.412 31.410 34.170 37.566 39.997
25 16.473 19.939 24.337 29.339 34.382 37.652 40.646 44.314 46.928
30 20.599 24.478 29.336 34.800 40.256 43.773 46.979 50.892 53.672
35 24.797 29.054 34.336 40.223 46.059 49.802 53.203 57.342 60.275
40 29.051 33.660 39.335 45.616 51.805 55.758 59.342 63.691 66.766
45 33.350 38.291 44.335 50.985 57.505 61.656 65.410 69.957 73.166
50 37.689 42.942 49.335 56.334 63.167 67.505 71.420 76.154 79.490
60 46.459 46.459 52.294 59.335 74.397 79.082 83.298 88.379 91.952
70 55.329 55.329 61.698 69.334 85.527 90.531 95.023 100.425 104.215
80 64.278 64.278 71.144 79.334 96.578 101.879 106.629 112.329 116.321
90 73.291 73.291 80.625 89.334 107.565 113.145 118.136 124.116 128.299
100 82.358 82.358 90.133 99.334 118.498 124.342 129.561 135.807 140.170

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Normal Distribution Tables – areas (probabilities) for upper tail of the distribution.

0
Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.00 0.5000 0.4960 0.4920 0.4880 0.4840 0.4801 0.4761 0.4721 0.4681 0.4641
0.10 0.4602 0.4562 0.4522 0.4483 0.4443 0.4404 0.4364 0.4325 0.4286 0.4247
0.20 0.4207 0.4168 0.4129 0.4090 0.4052 0.4013 0.3974 0.3936 0.3897 0.3859
0.30 0.3281 0.3783 0.3745 0.3707 0.3669 0.3632 0.3594 0.3557 0.3520 0.3483
0.40 0.3446 0.3409 0.3372 0.3336 0.3300 0.3264 0.3228 0.3192 0.3156 0.3121
0.50 0.3085 0.3050 0.3015 0.2981 0.2946 0.2912 0.2877 0.2843 0.2810 0.2776
0.60 0.2743 0.2709 0.2676 0.2643 0.2611 0.2578 0.2546 0.2514 0.2483 0.2451
0.70 0.2420 0.2389 0.2358 0.2327 0.2297 0.2266 0.2236 0.2206 0.2177 0.2148
0.80 0.2119 0.2090 0.2061 0.2033 0.2005 0.1977 0.1949 0.1922 0.1894 0.1867
0.90 0.1841 0.1814 0.1788 0.1762 0.1736 0.1711 0.1685 0.1660 0.1635 0.1611
1.00 0.1587 0.1562 0.1539 0.1515 0.1492 0.1469 0.1446 0.1423 0.1401 0.1379
1.10 0.1357 0.1335 0.1314 0.1292 0.1271 0.1251 0.1230 0.1210 0.1190 0.1170
1.20 0.1151 0.1131 0.1112 0.1093 0.1075 0.1056 0.1038 0.1020 0.1003 0.0985
1.30 0.0968 0.0951 0.0934 0.0918 0.0901 0.0885 0.0869 0.0853 0.0838 0.0823
1.40 0.0808 0.0793 0.0778 0.0764 0.0749 0.0735 0.0721 0.0708 0.0694 0.0681
1.50 0.0668 0.0655 0.0643 0.0630 0.0618 0.0606 0.0594 0.0582 0.0571 0.0559
1.60 0.0548 0.0537 0.0526 0.0516 0.0505 0.0495 0.0485 0.0475 0.0465 0.0455
1.70 0.0446 0.0436 0.0427 0.0418 0.0409 0.0401 0.0392 0.0384 0.0375 0.0367
1.80 0.0359 0.0351 0.0344 0.0336 0.0329 0.0322 0.0314 0.0307 0.0301 0.0294
1.90 0.0287 0.0281 0.0274 0.0268 0.0262 0.0256 0.0250 0.0244 0.0239 0.0233
2.00 0.0228 0.0222 0.0217 0.0212 0.0207 0.0202 0.0197 0.0192 0.0188 0.0183
2.10 0.0179 0.0174 0.0170 0.0166 0.0162 0.0158 0.0154 0.0150 0.0146 0.0143
2.20 0.0139 0.0136 0.0132 0.0129 0.0125 0.0122 0.0119 0.0116 0.0113 0.0110
2.30 0.0107 0.0104 0.0102 0.0099 0.0096 0.0094 0.0091 0.0089 0.0087 0.0084
2.40 0.0082 0.0080 0.0078 0.0075 0.0073 0.0071 0.0069 0.0068 0.0066 0.0064
2.50 0.0062 0.0060 0.0059 0.0057 0.0055 0.0054 0.0052 0.0051 0.0049 0.0048
2.60 0.0047 0.0045 0.0044 0.0043 0.0041 0.0040 0.0039 0.0038 0.0037 0.0036
2.70 0.0035 0.0034 0.0033 0.0032 0.0031 0.0030 0.0029 0.0028 0.0027 0.0026
2.80 0.0026 0.0025 0.0024 0.0023 0.0023 0.0022 0.0021 0.0021 0.0020 0.0019
2.90 0.0019 0.0018 0.0018 0.0017 0.0016 0.0016 0.0015 0.0015 0.0014 0.0014
3.00 0.0014 0.0013 0.0013 0.0012 0.0012 0.0011 0.0011 0.0011 0.0010 0.0010
3.10 0.0010 0.0009 0.0009 0.0009 0.0008 0.0008 0.0008 0.0008 0.0007 0.0007
3.20 0.0007 0.0007 0.0006 0.0006 0.0006 0.0006 0.0006 0.0005 0.0005 0.0005
3.30 0.0005 0.0005 0.0005 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004
3.40 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0002
3.50 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002

6
Pearson’s r Significance level for one-tailed tests
(area of
0.05 0.025 0.01 0.005
upper tail)
Degrees of
Significance level for two-tailed tests
freedom (n-2),
where n = 0.10 0.05 0.02 0.01
number of pairs
1 .988 .997 .9995 .9999
2 .900 .950 .980 .990
3 .805 .878 .934 .959
4 .729 .811 .882 .917
5 .669 .754 .833 .874
6 .622 .707 .789 .834
7 .582 .666 .750 .798
8 .549 .632 .716 .765
9 .521 .602 .685 .735
10 .497 .576 .658 .708
11 .476 .553 .634 .684
12 .458 .532 .612 .661
13 .441 .514 .592 .641
14 .426 .497 .574 .628
15 .412 .482 .558 .606
16 .400 .468 .542 .590
17 .389 .456 .528 .575
18 .378 .444 .516 .561
19 .369 .433 .503 .549
20 .360 .423 .492 .537
21 .352 .413 .482 .526
22 .344 .404 .472 .515
23 .337 .396 .462 .505
24 .330 .388 .453 .495
25 .323 .381 .445 .487
26 .317 .374 .437 .479
27 .311 .367 .430 .471
28 .306 .361 .423 .463
29 .301 .355 .416 .456
30 .296 .349 .409 .449
35 .275 .325 .381 .418
40 .257 .304 .358 .393
45 .243 .288 .338 .372
50 .231 .273 .322 .354
60 .211 .250 .295 .325
70 .195 .232 .274 .302
80 .183 .217 .256 .284
90 .173 .205 .242 .267
100 .164 .195 .230 .254