This document provides formulas and definitions for key concepts in business statistics including:
- Weighted average, standard deviation, and coefficient of variation formulas
- Interquartile range and fences for identifying outliers
- General probability rules for independent and mutually exclusive events
- Expected values, binomial, Poisson, exponential, uniform, and normal distributions
- Excel formulas for calculating mean, median, mode, standard deviation, quartiles and other common statistics metrics.
This document provides formulas and definitions for key concepts in business statistics including:
- Weighted average, standard deviation, and coefficient of variation formulas
- Interquartile range and fences for identifying outliers
- General probability rules for independent and mutually exclusive events
- Expected values, binomial, Poisson, exponential, uniform, and normal distributions
- Excel formulas for calculating mean, median, mode, standard deviation, quartiles and other common statistics metrics.
This document provides formulas and definitions for key concepts in business statistics including:
- Weighted average, standard deviation, and coefficient of variation formulas
- Interquartile range and fences for identifying outliers
- General probability rules for independent and mutually exclusive events
- Expected values, binomial, Poisson, exponential, uniform, and normal distributions
- Excel formulas for calculating mean, median, mode, standard deviation, quartiles and other common statistics metrics.
This document provides formulas and definitions for key concepts in business statistics including:
- Weighted average, standard deviation, and coefficient of variation formulas
- Interquartile range and fences for identifying outliers
- General probability rules for independent and mutually exclusive events
- Expected values, binomial, Poisson, exponential, uniform, and normal distributions
- Excel formulas for calculating mean, median, mode, standard deviation, quartiles and other common statistics metrics.
General Probability 𝑃𝑃(𝐴𝐴 or 𝐵𝐵) = 𝑃𝑃(𝐴𝐴) + 𝑃𝑃(𝐵𝐵) − 𝑃𝑃(𝐴𝐴 and 𝐵𝐵)
Rules: 𝑃𝑃(𝐴𝐴 and 𝐵𝐵) 𝑃𝑃(𝐴𝐴 and 𝐵𝐵) = 𝑃𝑃(𝐴𝐴|𝐵𝐵) × 𝑃𝑃(𝐵𝐵) 𝑃𝑃(𝐴𝐴|𝐵𝐵) = 𝑃𝑃(𝐵𝐵) 𝑃𝑃(𝐴𝐴 or 𝐵𝐵) = 𝑃𝑃(𝐴𝐴) + 𝑃𝑃(𝐵𝐵) If A and B are 𝑃𝑃(𝐴𝐴 and 𝐵𝐵) = 0 MUTUALLY EXCLUSIVE:
If A and B are 𝑃𝑃(𝐴𝐴|𝐵𝐵) = 𝑃𝑃(𝐴𝐴) 𝑃𝑃(𝐴𝐴 and 𝐵𝐵) = 𝑃𝑃(𝐴𝐴) × 𝑃𝑃(𝐵𝐵)
number_s = number of successes trials = number of trials (n) probability_s = probability of success on a single trial (p) TRUE or 1 finds the probability of at most a certain number of successes i.e., P(x≤a) FALSE or 0 finds the probability of an exact number of successes i.e., i.e., P(x=a) 𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩. 𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫. 𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹 (trials, probability_s, number_s, number_s2) Finds the probability that the number of successes will fall between two numbers trials = number of trials (n) probability_s = probability of success on a single trial (p) number_s = smallest number number_s2 = largest number
Poisson Distribu�ons: 𝜇𝜇 = 𝜆𝜆 𝜎𝜎 = √𝜆𝜆
𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷. 𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫 (x, mean, cumulative)
x = number of occurrences mean (λ) = mean number of occurrences TRUE or 1 finds the probability of at most a certain number of occurrences. FALSE or 0 finds the probability of an exact number of occurrences.
Calculates the probability less than the x-value x = value that we are calcula�ng probability less than mean (µ) = Mean Standard_dev (σ) = Standard devia�on for sampling distribu�on of means, use 𝜎𝜎𝑥𝑥 = 𝜎𝜎⁄√𝑛𝑛 𝑵𝑵𝑵𝑵𝑵𝑵𝑵𝑵. 𝑺𝑺. 𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫(z, TRUE) Calculates the probability less than the z-score z = z-score that we are calcula�ng probability less than 𝑵𝑵𝑵𝑵𝑵𝑵𝑵𝑵. 𝑰𝑰𝑰𝑰𝑰𝑰(probability, mean, standard_dev) Calculates the x-value associated with the probability less than (or percen�le) Probability (p) = cumula�ve probability (less than x-value) mean (µ)= Mean Standard_dev (σ)= Standard devia�on for sampling distribu�on of means, use 𝜎𝜎𝑥𝑥 = 𝜎𝜎⁄√𝑛𝑛 𝑵𝑵𝑵𝑵𝑵𝑵𝑵𝑵. 𝑺𝑺. 𝑰𝑰𝑰𝑰𝑰𝑰(probability) Calculates the z-score associated with the probability less than (or percen�le) Probability (p) = cumula�ve probability (less than z-score)
Additional Excel Formulas
Mean Value = 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴(𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟)
Median Value = 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀(𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟)
Mode Value = 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀(𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟) 𝑜𝑜𝑜𝑜 = 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀. 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀(𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟)
