Skip to ContentGo to accessibility page
Introductory Business Statistics

Formula Review

Introductory Business StatisticsFormula Review

Formula Review

8.2 A Confidence Interval for a Population Standard Deviation Unknown, Small Sample Case

s = the standard deviation of sample values.

t=  x - −μ s n t=  x - −μ s n is the formula for the t-score which measures how far away a measure is from the population mean in the Student’s t-distribution

df = n - 1; the degrees of freedom for a Student’s t-distribution where n represents the size of the sample

T~tdf the random variable, T, has a Student’s t-distribution with df degrees of freedom

The general form for a confidence interval for a single mean, population standard deviation unknown, and sample size less than 30 Student's t is given by: x¯ - t v,α ( s n ) ≤ μ ≤ x¯ + t v,α ( s n ) x¯- t v,α ( s n )≤μ≤x¯+ t v,α ( s n )

8.3 A Confidence Interval for A Population Proportion

p′= xnxn where x represents the number of successes in a sample and n represents the sample size. The variable p′ is the sample proportion and serves as the point estimate for the true population proportion.

q′ = 1 – p′

The variable p′ has a binomial distribution that can be approximated with the normal distribution shown here. The confidence interval for the true population proportion is given by the formula:

p' - Zα p'q' n ≤ p ≤ p' + Zα p'q' n p'-Zαp'q' n ≤ p ≤ p'+Zαp'q' n

n=  Z α 2 2 p ′ q ′ e 2 n=  Z α 2 2 p ′ q ′ e 2 provides the number of observations needed to sample to estimate the population proportion, p, with confidence 1 - α and margin of error e. Where e = the acceptable difference between the actual population proportion and the sample proportion.

8.4 Calculating the Sample Size n: Continuous and Binary Random Variables

n = Z 2 σ 2 (x¯-μ)2 Z 2 σ 2 (x¯-μ)2 = the formula used to determine the sample size (n) needed to achieve a desired margin of error at a given level of confidence for a continuous random variable

n = Zα2pq e2 n= Zα2pq e2 = the formula used to determine the sample size if the random variable is binary

Citation/Attribution
Reuse and redistribution of this content in digital or print format:
  • This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's prior written permission.
  • This book uses the Creative Commons Attribution License, which means that you can reuse and modify the material only for noncommercial purposes, must attribute OpenStax, and must distribute any derivative works under the same license.
  • Any commercial printing of this textbook, including using a local or custom printer, must be approved by OpenStax, and proper citation provided.
  • OpenStax-copyrighted images, activities, assessments, and similar components of this book are subject to the same licensing – CC-BY-NC-SA. They can be used for noncommercial purposes with attribution. Commercial use requires permission.
  • Permission requests: Anyone who intends to incorporate this content (including text, images, and other components) into large language models, use it in AI offerings, use it commercially (including in print), and/or has questions about another use case is welcome to complete our reuse request form.
Attribution information
  • If you are redistributing all or part of this book in a noncommercial print format, then you must include on every physical page the following attribution:

    Access for free at https://openstax.org/books/introductory-business-statistics/pages/1-introduction

  • If you are redistributing all or part of this book in a noncommercial digital format, then for every page that includes OpenStax content, you must license the derivative work under the same CC-BY-NC-SA license as the original, and include on every digital page view the following attribution:

    Access for free at https://openstax.org/books/introductory-business-statistics/pages/1-introduction

Citation information

The information below includes the information needed to generate citations in most major styles (APA, MLA, etc.); you must reformat and organize the information as needed to fit the requirements of the style. Use the information below to generate a citation. We recommend using a citation tool such as this one.

© Jun 23, 2022 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo, and Rice University name, and Rice University logo trademarks, or wordmarks are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.