Scribd
Upload
28 views3 pages

SPFA01 6+Formula+Sheet

This document provides formulas for measures of location, dispersion, skewness, probability concepts, probability distributions, confidence intervals, hypothesis tests, regression, correlation, and important calculator buttons. Key measures include the mean, variance, standard deviation, and quartiles. Important probability concepts covered are conditional probability, addition rule, and multiplication rule. Common distributions discussed are the binomial and Poisson distributions. Formulas are given for single mean and proportion confidence intervals and hypothesis tests. Regression analysis formulas include calculations for regression coefficients, Pearson's correlation coefficient, and the t-statistic.

Uploaded by

tf9wgz2ysd
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
28 views3 pages

SPFA01 6+Formula+Sheet

This document provides formulas for measures of location, dispersion, skewness, probability concepts, probability distributions, confidence intervals, hypothesis tests, regression, correlation, and important calculator buttons. Key measures include the mean, variance, standard deviation, and quartiles. Important probability concepts covered are conditional probability, addition rule, and multiplication rule. Common distributions discussed are the binomial and Poisson distributions. Formulas are given for single mean and proportion confidence intervals and hypothesis tests. Regression analysis formulas include calculations for regression coefficients, Pearson's correlation coefficient, and the t-statistic.

Uploaded by

tf9wgz2ysd
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

SPFA01-6 Formula Sheet

Measures of location

∑ 𝑥𝑖
Mean: 𝑥̅ = 𝑛

(𝑛+1)
Position of quartile: Quartile number × 4

Measures of dispersion and skewness

∑(𝑥𝑖 −𝑥̅ )2 ∑ 𝑥𝑖2 −𝑛𝑥̅ 2


Variance: 𝑠 2 = 𝑛−1
or 𝑠 2 = 𝑛−1

∑(𝑥𝑖 −𝑥̅ )2
Standard deviation: 𝑠 = √ 𝑛−1

𝑛∑(𝑥 −𝑥̅ )3 3(Mean-Median)


Pearson’s coefficient of skewness: 𝑆𝑘𝑝 = (𝑛−1)(𝑛−2)𝑠
𝑖
3 ≈ standard deviation

Probability concepts

P(A ∩ B)
Conditional probability: P(A | B) =
P(B)

Addition rule
• Non-mutually exclusive events: P(A ∪ B) = P(A) + P(B) - P(A ∩ B)
• Mutually exclusive events: P(A ∪ B) = P(A) + P(B)

Multiplication rule
• Statistically dependent events: P(A ∩ B) = P(A | B) × P(B)
• Statistically independent events: P(A ∩ B) = P(A) × P(B)

𝑛!
Permutation: 𝑛P𝑟 = (𝑛−𝑟)!

𝑛!
Combination: 𝑛C𝑟 =
𝑟!(𝑛−𝑟)!

© Milpark Education Statistical Principles for Financial Analysis SPFA01-6 Formula Sheet 2023
Page 1 of 3
Probability distributions

Binomial distribution: 𝑃(𝑥) = 𝑛C𝑥 𝑝 𝑥 (1 − 𝑝)𝑛−𝑥 for 𝑥 = 0, 1, 2, … , 𝑛

𝑒 −𝜆 𝜆𝑥
Poisson distribution: 𝑃(𝑥) = 𝑥!
for 𝑥 = 0, 1, 2, 3, …

𝑥−𝜇
Standard normal probability: 𝑧 =
𝜎

Confidence intervals

Single mean:
𝜎 𝜎
• Population standard deviation known: 𝑥̅ − 𝑧 ≤ 𝜇 ≤ 𝑥̅ + 𝑧
√𝑛 √𝑛
𝑠 𝑠
• Population standard deviation unknown: 𝑥̅ − 𝑡(𝑛−1) ≤ 𝜇 ≤ 𝑥̅ + 𝑡(𝑛−1)
√𝑛 √𝑛

𝑝(1−𝑝) 𝑝(1−𝑝)
Single proportion: 𝑝 − 𝑧√ 𝑛
≤ 𝜋 ≤ 𝑝 + 𝑧√ 𝑛

Hypothesis tests

Single mean
𝑥̅ −𝜇
• Population standard deviation known: 𝑧-𝑠𝑡𝑎𝑡 = 𝜎
√𝑛
𝑥̅ −𝜇
• Population standard deviation unknown: 𝑡-𝑠𝑡𝑎𝑡 = 𝑠
√𝑛

(𝑝−𝜋)
Single proportion: 𝑧-𝑠𝑡𝑎𝑡 =
𝜋(1−𝜋)
√
𝑛

Difference between two means


(𝑥̅ 1 −𝑥̅ 2 )−(𝜇1 −𝜇2 )
• Population standard deviation known: 𝑧-𝑠𝑡𝑎𝑡 =
𝜎2 2
1 +𝜎2
√
𝑛1 𝑛2

• Population standard deviations unknown, assumed equal:


(𝑥̅ 1 −𝑥̅ 2 )−(𝜇1 −𝜇2 ) (𝑛1 −1)𝑠12 + (𝑛2 −1)𝑠22
𝑡-𝑠𝑡𝑎𝑡 = where 𝑠𝑝2 =
1 1 𝑛1 +𝑛2 −2
√𝑠𝑝2 (𝑛 +𝑛 )
1 2

• Paired t-test
(𝑥̅ 𝑑 − 𝜇𝑑 ) ∑(𝑥𝑑 − 𝑥̅ 𝑑 )2
𝑡-𝑠𝑡𝑎𝑡 = 𝑠𝑑 where 𝑠𝑑 = √ 𝑛−1
√𝑛

© Milpark Education Statistical Principles for Financial Analysis SPFA01-6 Formula Sheet 2023
Page 2 of 3
Regression and correlation

Regression coefficients:
𝑛 ∑ 𝑥𝑦−∑ 𝑥 ∑ 𝑦
• 𝑏1 = 𝑛 ∑ 𝑥 2 −(∑ 𝑥)2
∑ 𝑦−𝑏1 ∑ 𝑥
• 𝑏0 =
𝑛

Pearson’s correlation coefficient:


𝑛 ∑ 𝑥𝑦−∑ 𝑥 ∑ 𝑦
• 𝑟=
√[𝑛 ∑ 𝑥 2 −(∑ 𝑥)2 ]×[𝑛 ∑ 𝑦 2 −(∑ 𝑦)2 ]

(𝑛−2)
• 𝑡-𝑠𝑡𝑎𝑡 = 𝑟√ 1−𝑟 2

Important calculator buttons

𝑦 𝑥: ×

√𝑥:

Permutation:

Combination:

Factorial: !

Change number of decimals: followed by the number of decimals to


show.

© Milpark Education Statistical Principles for Financial Analysis SPFA01-6 Formula Sheet 2023
Page 3 of 3

You might also like