Cheating Sheet / Important Formula – STATISTICS – FINAL TERM
1. Poisson Probability Distribution
𝑥 = value of random variable
𝜇 = mean
𝑒 = natural exponent (2,718)
! = factorial
2. Uniform Probability Distribution
𝑬(𝑿) = 𝝁 =
𝒂+𝒃
(𝒃 − 𝒂)𝟐 (𝒃 − 𝒂)𝟐
𝟐 𝑽𝒂𝒓(𝑿) = 𝑺𝑫(𝑿) = √
𝟏𝟐 𝟏𝟐
𝐹(𝑥) = 0 for 𝑥 < 𝑎
1
𝐹(𝑥) = × 𝑥 for 𝑎 ≤ 𝑥 ≤ 𝑏
𝑏−𝑎
𝐹(𝑥) = 0 for 𝑥 > 𝑏
𝑎 = minimum value
𝑏 = maximum value
𝑥 = value of random variable
3. Normal Distribution
𝑋 = value of random variable
𝜇 = population mean
𝜎 = population standard deviation
𝑍 = standard normal (z) variable
4. Normal Approximation to the Binomial
*Use z-distribution to approximate binomial to normal
5. Sampling Distribution
Standard error of sample mean:
Standard error of sample proportion:
𝑥̅ = sample mean
𝜇 = population mean
𝜎 = population standard deviation
𝑛 = number of sample
𝑁 = number of population
𝑝̅ = sample proportion
𝑝 = population proportion
𝑍 = standard normal (z) variable
Finite Population Correction Factor (FPCF):
*function: reduce standard error of sample mean / sample proportion. ALWAYS Multiply to
standard error of sample mean / sample proportion. Use FPCF when 𝒏 ≥ 𝟎, 𝟎𝟓𝑵
6. Interval Estimation
Note: confidence interval always contain point estimate and Margin of Error
CI = point estimate ± Margin of Error
a. For population mean (𝜇) when 𝜎 known
z 2ˆ
2
n=
D
b. For population mean (𝜇) when 𝜎 unkown
z 2ˆ
2
𝑟𝑎𝑛𝑔𝑒
n= 𝜎̂ =
4
D
df = degree of freedom = n – 1
c. For population proportion (p)
2
z 2
n= pˆ (1 − pˆ )
D
𝑥̅ = sample mean
𝑠 = sample standard deviation
𝜎 = population standard deviation
𝜎̂ = estimated population standard deviation
𝑛 = number of sample
𝑝̅ = sample proportion
𝑝 = population proportion
𝑝̂ = estimated population proportion
𝛼 = level of significance (1 – Confidence Level)
𝐷 = Margin of Error
𝑍 = standard normal (z) variable
𝑡 = students t-distribution
7. Hypothesis Testing
Hypothesis Testing Procedure:
1. Formulate the appropriate null hypothesis (𝐻0 ) and alternative hypothesis (𝐻1 /𝐻𝐴 ).
H0 HA Test Type Keyword
= ≠ Two-tail Exactly, Differ from
≥ < One-tail, Left-tail At least, Less than
≤ > One-tail, Right-tail At most, More than
*Note: Always use parameter population to specify the hypothesis
𝜇 = population mean or 𝑝 = population proportion
2. Specify the desired level of significance. (𝛼)
3. Collecting Data from sampling
4. Obtain sample evidence and compute the test statistic.
a. For population mean (𝜇) when 𝜎 known
b. For population mean (𝜇) when 𝜎 unkown
c. population proportion (p)
𝑥̅ = sample mean
𝑠 = sample standard deviation
𝜎 = population standard deviation
𝑛 = number of sample
𝑝̅ = sample proportion
𝑝 = population proportion
𝛼 = level of significance (1 – Confidence Level)
𝑑𝑓 = Degree of freedom ( n – 1)
𝜇0 = hypothesized value of mean
𝑝0 = hypothesized value of proportion
5. Determine the rejection region & rule.
Critical value approach:
a. Two Tailed Test
Reject H0 if |𝑍𝑠𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐| > |𝑍𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙|
Reject H0 if |𝑡𝑠𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐| > |𝑡𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙|
b. One Tailed Test – Right
Reject H0 if Zstatistic > Zcritical
Reject H0 if tstatistic > tcritical
c. One Tailed Test – Left
Reject H0 if Zstatistic < Zcritical
Reject H0 if tstatistic < tcritical
P-value approach: Reject H0 if p-value < 𝛼
6. Reach a decision and interpret the result.