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Introductory Business Statistics

Formula Review

Introductory Business StatisticsFormula Review

2.2 Measures of the Location of the Data

i=( k 100 )( n+1 ) i=( k 100 )( n+1 )

where i = the ranking or position of a data value,

k = the kth percentile,

n = total number of data.

Expression for finding the percentile of a data value: ( x + 0.5y n ) ( x + 0.5y n ) (100)

where x = the number of values counting from the bottom of the data list up to but not including the data value for which you want to find the percentile,

y = the number of data values equal to the data value for which you want to find the percentile,

n = total number of data

2.3 Measures of the Center of the Data

μ= fm f μ= fm f Where f = interval frequencies and m = interval midpoints.

The arithmetic mean for a sample (denoted by x¯x¯) is x ¯  =  Sum of all values in the sample Number of values in the sample x ¯  =  Sum of all values in the sample Number of values in the sample

The arithmetic mean for a population (denoted by μ) is μ= Sum of all values in the population Number of values in the population μ= Sum of all values in the population Number of values in the population

2.5 Geometric Mean

The Geometric Mean: x~ = (i=1nxi) 1n = x1·x2···xn n = (x1·x2···xn)1n x~= (i=1nxi) 1n=x1·x2···xn n =(x1·x2···xn)1n

2.6 Skewness and the Mean, Median, and Mode

Formula for skewness: a3=(xix¯)3ns3a3=(xix¯)3ns3
Formula for Coefficient of Variation:CV=sx¯·100conditioned uponx¯0CV=sx¯·100conditioned uponx¯0

2.7 Measures of the Spread of the Data

s x= fm2 n x 2 s x= fm2 n x 2 where sx = sample standard deviation x  = sample mean sx = sample standard deviation x  = sample mean

Formulas for Sample Standard Deviation s= Σ (x x ) 2 n1 s= Σ (x x ) 2 n1 or s= Σf (x x ) 2 n1 s= Σf (x x ) 2 n1 or s=(i=1nx2)-nx¯2n-1s=(i=1nx2)-nx¯2n-1 For the sample standard deviation, the denominator is n - 1, that is the sample size - 1.

Formulas for Population Standard Deviation σ  =  Σ (xμ) 2 N σ  =  Σ (xμ) 2 N or σ  =  Σf (xμ) 2 N σ  =  Σf (xμ) 2 N or σ=i=1Nxi2N-μ2σ=i=1Nxi2N-μ2 For the population standard deviation, the denominator is N, the number of items in the population.

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