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Intro to Probability and Statistics Formula Sheet 2

# Intro to Probability and Statistics Formula Sheet 2

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Sheet sheet for basic probability and statistics, part 1
Sheet sheet for basic probability and statistics, part 1

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01/16/2014

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Intro to Probability and StatisticsFormula Sheet
Chapter 8
8-1 Normal Distribution (known variance)
-higher confidence interval means less precision since the interval grows larger -to find z
α/2

first find α/2, which is 1
-
confidence interval (e.g. 95%, α = 0.05), then go to Appendix A page 709 and
find the location (1 -
α/2) in the table (e.g. for 95% i
nterval it will be 1.96 and for 99% it is 2.58)
-n must be an integer, so we round up if there is decimal-
we replace σ with, s the sample standard deviation
-for large enough sample size with unknown variance this works (n > 40)-even with unknown variance, for large enough sample size (n => 40) we can usethis above normal distribution (for one-sided we just use z
α

α
/2
)
8-2 Normal Distribution (unknown variance)
-for unknown variance with small sample size (n < 40) we use the t-distribution,which is similar to the Normal but has heavier tails-we also use the sample standard deviation, s
8-3 Normal Distribution Variance and Standard Deviation8-4 Large Sample Population Proportion
-we estimate that p = x / n- Another approach to choosing n uses the fact that the sample size fromEquation 8-24 will always be a maximum for p = 0.5 [that is, p(1 - p) <= 0.25 withequality for p = 0.5], and this can be used to obtain an upper bound on n. In other words, we are at least 100(1 -
α)
% confident that the error in estimating p by isless than E if the sample size is:-regardless of true value of p, and maximizes n since p
max
= 0.5

Chapter 9
-also called Significance LevelFor Proportions:-find standard deviation by

population
√


Chapter 10
10-4 Paired t-test10-6 Inference on Two Population Proportions