Professional Documents
Culture Documents
Liton Chakraborty
February 16, 2015
1
xi
n
s x2
x2
2
x
n 1
The sample standard deviation, sx is the square root of the sample variance:
sx
n 1
2
i
nx 2
n 1
The Standard Error of the Mean or S.E.M. is an estimate of the standard deviation of x :
Standard Error of the Mean = S .E.M . s /
Sample coefficient of variation (CV):
Empirical Rule:
1
s
CV
x
100%
Cov (x , y) s xy
Sample correlation coefficient:
II.
(x
i 1
x)(yi y)
n 1
Cov (x , y)
sX sY
BASIC PROBABILITY
Probability of A or B:
P ( A or B ) P ( A) P ( B ) P ( A and B )
P ( A or B ) P ( A) P ( B )
P( A and B)
P( A B)
P( B)
P( A B) P( A)
P( A and B) P( A B) P( B)
P( A and B) P( A) P( B)
Liton Chakraborty
February 16, 2015
Bayes' Theorem
P( Bi A)
P( A Bi ) P ( Bi )
P( A B1 ) P( B1 ) P( A B2 ) P( B2 ) ... P( A Bk ) P( Bk )
odds
P(A)
P(A)
1 - P(A) P(A)
III.
PROBABILITY DISTRIBUTIONS
Mean and variance of a discrete random variable:
N
E ( X ) X i P( X i )
i 1
i 1
2
Y| X
A.
Pr( n )
n e
n!
The variance of a Poisson is equal to the mean, so the standard deviation is the square root of the mean, .
B.
Pr( x)
n!
p x (1 p ) n x
x!n x !
The mean of a binomial is np and the variance is np(1-p). If n is large and p is small, the binomial is
approximated by a Poisson with np .
C.
Pr( x )
e ( x )
/ 2 2
Where and are the mean and variance as usual. A Poisson distribution can be approximated by a normal
distribution of the same mean and variance if is large. A binomial can be approximated by a normal
distribution if np and n(1-p) are both large.
The standard normal variate, z, :
z=
X -
D.
Liton Chakraborty
February 16, 2015
E.
(b - a) 2
12
a = minimum value of x;
ab
2
b = maximum value of x
f(t) e t
for t > 0
The cumulative distribution function (the probability that an arrival time is less than some specified time t) is:
IV.
RULES ON EXPECTATIONS:
E[X+] = E[X]+ when both and are constants.
E[XY] = E[X]E[Y] if X and Y are statistically independent.
var(X + ) = 2var(X)
var(X) = E[ X2 ] if E[X ] = 0
var(X Y) = 2var(X) + 2var(Y) - 2 cov(X,Y)
Good luck!!!