SRS

𝜎 2 (𝑋) = σ𝑖(𝑥𝑖 −𝜇)2 𝑃(𝑋 = 𝑥𝑖 ) Unbiased: Each unit has equal chance of
being chosen in the sample
𝑀𝑒𝑎𝑛 = 𝜇 = 𝐸 𝑋 = σ𝑖 𝑥𝑖 𝑃(𝑋 = 𝑥𝑖 ) Independent: Selection of one unit has
no influence on selection of other units

Suppose Y = aX1+bX2

Then mean and variance of Y are given by:

μy = E[Y] = aμ1+ bμ2
𝑋𝑖 − 𝜇 𝑋𝑖 − 𝑋ത
𝑍𝑖 = 𝑜𝑟 σy2 = Var[Y] = a2σ12 + b2 σ22
𝜎 𝑆
𝑛 3
σ𝑖=1 𝑍𝑖
𝐾3 = Suppose X1~N(μ1, σ12) and X2~N(μ2, σ22)
𝑛

σ𝑛𝑖=1 𝑍𝑖4 Then above results hold and in addition:

𝐾4 = −3 Y~N(aμ1+ bμ2, a2σ12 + b2 σ22)
𝑛
K4 = 0 for Normal.
Distributions with no tails (Uniform) have negative k4 𝑌~𝑁 𝑎𝜇1 + 𝑏𝜇2 , 𝑎2 𝜎12 + 𝑏 2 𝜎22
Long tails (many outliers) have positive k4
 p(1 − p) 𝑣
p  z1−α 𝑡=𝑍
𝑊
n Where
Z is standard Normal
distribution
W has a χ2 distribution
with v degrees of
freedom
Z and W are
independent
Check for confounding variables, srs,
kurtosis