Formular Sheet Part 1

Chapter 3 and 4: Numerical Descriptive Measures

Topic Formula

 xi
Sample Mean x
n
 xi
Population Mean 
N

Weighted Mean x   wi xi

p
Percentile Location L p   n  1
100

Range Range = Max – Min

 xi  x
Sample MAD Sample MAD 
n
 xi  
Population MAD Population MAD 
N
  xi  x 
2
Sample Variance s2 
n 1

Sample Standard Deviation s  s2

  xi   
2
2
Population Variance  
N

Population Standard Deviation   2

s
Sample Coefficient of Variation Sample CV 
x

Population Coefficient of Variation Population CV 

xI  R f
Sharpe Ratio Sharpe Ratio 
sI
xx
z-Score z
s
 mi fi
Sample Mean for Grouped Data x
n
  mi  x  f i
2
Sample Variance for Grouped Data 2
s 
n 1
 mi fi
Population Mean for Grouped Data 
N

1
   mi    fi
2
Population Variance for Grouped 2
Data  
N
  xi  x   yi  y 
Sample Covariance s xy 
n 1

Population Covariance  xy 

  xi   x  yi   y 
N
s xy
Sample Correlation Coefficient rxy 
sx s y
 xy
Population Correlation Coefficient  xy 
 x y

Chapter 5: Introduction to Probability

Topic Formula

Complement Rule  
P Ac  1  P  A 

Addition Rule P  A  B   P  A  P  B   P  A  B 

Addition Rule for Mutually P  A  B   P  A  P  B 

Exclusive Events
P  A B 
Conditional Probability P  A | B 
P  B

Multiplication Rule P  A B   P  A | B  P  B 

Total Probability Rule 

P  A  P  A | B  P  B   P A | B c P B c   
P  A | B P  B
P  B | A 
Bayes’ Theorem
or
   
P  A | B  P  B   P A | Bc P Bc

Chapter 6: Discrete Probability Distributions

Topic Formula

Expected Value of a Discrete E  X      xi P  X  xi 

Random Variable
Variance of a Discrete Random
Var  X    2    xi    P  X  xi 
2
Variable
Standard Deviation of a Discrete
Random Variable SD  X      2

2
 n! nx
Binomial Distribution P  X  x  px  1 p
x ! n  x  !
Expected Value of a Binomial E  X     np
Random Variable
Variance of a Binomial Random
Var  X    2  np  1  p 
Variable
Standard Deviation of a Binomial
SD  X     np  1  p 
Random Variable
e   x
Poisson Distribution P  X  x 
x!
Expected Value of a Poisson E X   
Random Variable
Variance of a Poisson Random
Var  X    2  
Variable
Standard Deviation of a Poisson
SD  X     
Random Variable
 S  N  S 
  
x nx 
Hypergeometric Distribution P  X  x    
N
 
n
Expected Value of a Hypergeometric S 
E X     n 
Random Variable N
Variance of a Hypergeometric  S  S  N  n 
Var  X    2  n   1   
Random Variable  N  N   N  1 

Standard Deviation of a  S  S  N  n 
SD  X     n   1   
Hypergeometric Random Variable  N  N   N  1 

Chapter 7: Continuous Probability Distributions

Topic Formula

Cumulative Distribution Function F  x  P  X  x

 1
 for a  x  b, and
Continuous Uniform Distribution f  x  b  a
0 for x  a or x  b

Expected Value of a Uniform ab
E X    
Distribution 2
Standard Deviation of a Uniform
Distribution SD  X      b  a 2 12

Standard Transformation of the X 

Z
Normal Random Variable 

3
Inverse Transformation of the X    Z
Normal Random Variable
1
Mean of an Exponential Distribution E X  

Standard Deviation of an 1
SD  X   E ( X ) 
Exponential Distribution 
Exponential Cumulative Distribution
P  X  x   1  e  x
Function