Stats Formula Book – June 2023 CA Foundation by CA.

Pranav Popat | Dil Se Re

Class Boundary
Formula 1 Mutually Exclusive Classification UCB = UCL and LCB = LCL
Mutually Inclusive Classification UCB = UCL + 0.5 and LCB = LCL - 0.5
LCL + UCL LCB + UCB
Formula 2 Mid-Point / Class Mark of Class Interval: or
2 2
Formula 3 Class Length / Width of Class / Size of Class: UCB − LCB
Frequency of the class
Formula 4 Frequency Density of a Class:
Class length of the class
Frequency of the class
Relative Frequency:
Total Frequency of distribution
Formula 5
Frequency of the class
Percentage Frequency:  100
Total Frequency of distribution
x + x + x + ... + xn x
Formula 6 AM of Discrete Distribution/Series: x = 1 2 3 in short x =
n n
 fx
AM of Frequency Distribution: x =
N
Formula 7
In case of ungrouped distribution x = individual value
In case of grouped frequency distribution x = mid-point of class interval
AM using assumed mean / step deviation method
Formula 8  fd x−A
x =A+  C where d = , A is assumed mean, C is class length
N C
The algebraic sum of deviations of a set of observations from their AM is zero
Formula 9
(x − x) = 0
n x +n x
Formula 10 Combined AM: xc = 1 1 2 2
n1 + n2
Median in case of discrete distribution
If number of observations are odd Median is middle term
Formula 11
If number of observations are even AM of two middle terms
Same formula is used for ungrouped frequency distribution
Median in case of grouped frequency distribution
Step 1 Prepare a less than type cumulative frequency distribution
Step 2 N
Calculate and check between which class boundaries it falls and call it
2
as Median Class
Step 3 l1 Nu Nl C
Formula 12 LCB of Median Cum Freq. of Cum. Freq. of Class length of
Class Median Class Pre-Median Class Median Class
Step 4 Appy Formula
N 
 2 − Nl 
Me = l1 +  C
 Nu − Nl 
 

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For a set of observations, the sum of absolute deviations is minimum, when the
Formula 13
deviations are taken from the median. (x − x) = 0 is minimum
Quartiles in case of discrete observations:
First Quartile Second Quartile Third Quartile
th th th
Formula 14  1  2  3
Q 1 =  (n + 1)   term Q 2 =  (n + 1)   term Q 3 =  (n + 1)   term
 4  4  4
Note: above formula gives the term. Final value to be calculated based on the term
Deciles in case of discrete observations:
First Decile Second Decile Ninth Decile
th th th
Formula 15  1   2   9 
D1 =  (n + 1)   term D2 =  (n + 1)   term D9 =  (n + 1)   term
 10   10   10 
Note: above formula gives the term. Final value to be calculated based on the term
Percentiles in case of discrete observations:
First Percentile Second Percentile 99th Percentile
th th th
Formula 16  1   2   99 
P1 =  (n + 1)   term P2 =  (n + 1)   term P99 =  (n + 1)   term
 100   100   100 
Note: above formula gives the term. Final value to be calculated based on the term
Quartiles in case of Grouped Frequency Distribution: Steps are like median with few
modifications.
1st Quartile 3rd Quartile
N 3N
Find Q1 class using Find Q3 class using
Formula 17 4 4
N   3N 
 − Nl   4 − Nl 
Q 1 = l1 +  4   C Q 3 = l1 +  C
 Nu − Nl   Nu − Nl 
   
Deciles in case of Grouped Frequency Distribution: Steps are like median with few
modifications.
1st Decile 9th Decile
N 9N
Find D1 class using Find D9 class using
Formula 18 10 10
 N   9N 
 10 − Nl   10 − Nl 
D1 = l1 +  C D9 = l1 +  C
 Nu − Nl   Nu − Nl 
   
Percentiles in case of Grouped Frequency Distribution: Steps are like median with few
modifications.
Formula 19 1st Percentile 99th Percentile
N 99N
Find P1 class using Find P99 class using
100 10

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 N   99N 
 100 − Nl   10 − Nl 
P1 = l1 +  C P99 = l1 +  C
 Nu − Nl   Nu − Nl 
   
Mode in case of discrete observation: observation repeating for maximum no. of
times or observation with highest frequency
Formula 20
Note: There can be multiple modes also. If all observations are having same
frequency, then there is no mode.
Mode in case of grouped frequency distribution:
Find Modal Class (Class with highest frequency) then apply below formula
 f −f 
Formula 21 Mo = l1 +  0 −1   C
 2f0 − f−1 − f1 
where, l1 = LCB of modal class f0 = frequency of modal class, f−1 = frequency of pre-
modal class, f1 = frequency of post modal class, C = class length of modal class
Relationship between Mean, Median and Mode in case of Symmetrical Distribution:
Formula 22
Mean = Median = Mode
Relationship between Mean, Median and Mode in case of moderately skewed
Formula 23
distribution: Mean – Mode = 3 (Mean – Median)
Geometric Mean in case of discrete positive observations:
Formula 24
G = ( x1  x 2  ...  x n )
1/n

Geometric Mean in case of frequency distribution:

G = ( x1f1  x 2 f2  ...  xnfn )
Formula 25 1/N

n
Harmonic Mean in case of discrete observations: H =
Formula 26 1
( )
x
N
Harmonic Mean in case of frequency distribution: H =
Formula 27 f
( )
x
n +n
Combined HM = 1 2
Formula 28 n1 n2
+
H1 H2
Relationship between AM, GM and HM
Situation Relationship
Formula 29 When all the observations are identical / same AM = GM = HM
When all the observations are distinct / different AM  GM  HM
In General AM  GM  HM
Range in case of discrete observations: L – S
Formula 30
where L = Largest Observation, S = Smallest Observation
Range in case of Grouped Frequency Distribution: L – S
Formula 31
L = UCB of last class interval, S = LCB of first-class interval
L−S
Formula 32 Coefficient of Range  100
L+S

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Stats Formula Book – June 2023 CA Foundation by CA. Pranav Popat | Dil Se Re

Mean Deviation in case of discrete observations

Formula 33 1
MDA = |x − A| where A is any appropriate central tendency (as given)
n
Mean Deviation (in case of grouped frequency distributions)
Formula 34 1
MDA = f |x − A | where A is any appropriate central tendency (as given)
N
Mean Deviation about A
Formula 35 Coefficient of Mean Deviation:  100
A
Standard Deviation in case of discrete observations:
Formula 36 (x − x)2  x2
−(x)
2
σx = SDx = or shorter formula σx = SDx =
n n
Standard Deviation in case of grouped frequency observations
Formula 37  f(x − x)2  fx2
−(x)
2
σx = SDx = or shorter formula σx = SDx =
N N
SDx
Formula 38 Coefficient of Variation:  100
x
If there are only two observations, then SD is half of range
Formula 39 |a − b|
SD =
2
n2 − 1
Formula 40 Standard Deviation of first n natural numbers: s =
12
n1s12 + n2s22 + n1d12 + n2d22
Combined SD: SDc =
Formula 41 n1 + n2
d1 = xc − x1 and d2 = xc − x2
Formula 42 If all the observations are constant, then SD/ MD/ Range is ZERO
Change of Origin and Scale: No effect of change of origin but affected by change of
Formula 43 scale in the magnitude (ignore sign) SDy = b SDx
Note: same thing will apply to all the measures of dispersion
Q − Q1
Formula 44 Quartile Deviation: QDx = 3
2
Q − Q1
Formula 45 Coefficient of Quartile Deviation: 3  100
Q 3 + Q1
Relationship between SD, MD and QD
Formula 46
4SD = 5MD = 6QD or SD:MD: QD = 15:12:10
No. of favorable events to A
Formula 47 Basic Formula of Probability: P(A) =
Total no. of events
no. of favorable events
Formula 48 Odds in favour of Event A:
no. of unfavorable events
no. of unfavorable events
Formula 49 Odds against an Event A:
no. of favorable events
Number of total outcomes of a random experiment:
Formula 50
If an experiment results in p outcomes and if it is repeated q times, then
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Stats Formula Book – June 2023 CA Foundation by CA. Pranav Popat | Dil Se Re

Total number of outcomes is pq

Relative Frequency Probability
Formula 51 no. of times the event occurred during experimental trials fA
=
total no. of trials n
no.of sample points in A n(A)
Set Based Probability: P(A) = =
Formula 52 no.of sample points in S n(S)
here A is Event Set and S is Sample Space
Addition Theorem 1: In case of two mutually exclusive events A and B
Formula 53
P(A∪B) = P(A+B) = P(A or B) = P(A) + P(B)
Addition Theorem 2: In case of two or more mutually exclusive events
Formula 54
P (A1 ∪ A2 ∪ A3 ∪…) = P(A1 ) + P(A2 ) + P(A3 ) + …
Addition Theorem 3: For any two events
Formula 55
P(A  B) = P(A) + P(B) − P ( A  B )
Addition Theorem 4: In case of any three events
Formula 56
P(A B  C) = P(A) + P(B) + P(C) − P(A B) −P(B  C) −P(A  C) +P(A  B  C)
Conditional Probability of Event B when Event A is already occurred
Formula 57 P(B  A)
P(B / A) = provided P(A)  0
P(A)
Conditional Probability of Event A when Event B is already occurred
Formula 58 P(B  A)
P(A / B) = provided P(B)  0
P(B)
Compound Theorem: In case of two dependent events
Formula 59
P(A  B) = P (B)  P ( A / B) or P(A  B) = P ( A )  P (B / A )
Compound Theorem: In case of two independent events
Formula 60
P(A  B) = P ( A )  P (B )
Expected value of a Probability Distribution: E(x) = pixi
Formula 61
Also, E(x) = μ (here μ means mean of probability distribution)
Variance of Probability Distribution: V(x) = E(x − μ)2 = E(x 2 ) − E(x)
2
Formula 62
Probability Mass Function in case of Binomial Distribution:
Formula 63
f(x) = P(X = x) = n Cxpxqn−x
Mean of Binomial Distribution: μ = np
Formula 64
Variance of Binomial Distribution: σ2 = npq
Mode in case of Binomial Distribution:
Step 1 Calculate (n + 1)p
Step 2A If (n + 1)p is an integer, there will be two modes:
Formula 65
μ0 = (n + 1)p & [(n + 1)p − 1]
Step 2B If (n + 1)p is a non-integer, there will be only one mode:
μ0 = largest integer contained in (n + 1)p
e−mmx
Formula 66 Probability Mass Function in case of Poisson Distribution: f(x) = P(X = x) =
x!
Formula 67 Mean of Poisson Distribution: μ = m

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Variance of Poisson Distribution: σ2 = m

SD of Poisson Distribution: σ = m
Mode in case of Poisson Distribution:
Formula 68 If m is an integer there will be two modes: μ0 = m&m − 1
If m is a non-integer there will be only one mode: largest integer contained in m
2
 x−μ  1
1  
Formula 69 Probability Density Function in case of Normal Distribution f(x) = .e σ  2

σ 2π
Formula 70 Mean Deviation in case of Normal Distribution: MD = 0.8σ
Formula 71 Quartiles in case of Normal Distribution: Q1 = μ − 0.675σ & Q 3 = μ + 0.675σ
Formula 72 Quartile Deviation in case of Normal Distribution: QD = 0.675σ
Formula 73 Points of Inflex of Normal Curve: μ − σ & μ + σ
Formula 74 In case of Normal Distribution, Ratio between QD: MD: SD = 10:12:15
Formula 75 Conditions of Standard Normal Distribution: Mean = 0, SD = 1
(x − μ)
Formula 76 Z Score: Z =
σ
Area under Normal Curve (Popular Intervals)
From To Area under Normal Curve
Probability
Formula 77 μ μ+σ 34.135%
μ+σ μ + 2σ 13.59%
μ + 2σ μ + 3σ 2.14%
μ + 3σ + 0.135%
For a p  q bivariate frequency distribution:
Number of cells pq
Formula 78
Number of marginal distributions 2
Number of conditional distributions p+q
Karl Pearson’s Product Moment Correlation Coefficient:
Formula 79 Cov(x , y)
rxy =
(σx  σy )
Covariance between two variables:
Formula 80 (x − x )(y − y ) xy
Cov(x ,y) = or − x. y
n n
Spearman’s Rank Correlation Coefficient:
Formula 81 6d2
rR = 1 − 2 here d means difference in ranks of both variables
n(n − 1)
Spearman’s Rank Correlation Coefficient (in case of tied values)
6 ( d2 + A )
rR = 1 − here A is adjustment value
Formula 82 n(n2 − 1)
 ( t3 − t )
A= where t = tie length (calculate t value for each of the ties)
12
Formula 83 Coefficient of Concurrent Deviations
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 2c − m 
rc =    
 m 
where c is number of concurrent deviations (same direction)
m is number of pairs compared (equals to n-1)
Regression Coefficients:
SDy cov(x,y)
Y on X: byx = r. or byx =
( SDx )
2
Formula 84 SDx
SDx cov(x,y)
X on Y: bxy = r. or bxy =
( SDy )
2
SDy
Correlation Coefficient is the GM of regression coefficients:
Formula 85 rxy =  bxy  b yx
Note: rxy , bxy , byx all will have same sign
Change of Origin/ Scale for Regression Coefficients: Origin no impact, Scale impact of
both magnitude and sign.
change of scale of y
Formula 86 bvu = byx 
change of scale of x
change of scale of x
buv = bxy 
change of scale of y
Formula 87 Two regression lines (if not identical) will intersect at the point ( x, y )
Coefficient of Determination/ Explained Variance/ Accounted Variance:
Formula 88
(r )
2
xy

Coefficient of Non-determination/ Un-explained Variance/ Un-accounted Variance:

1 − (rxy )
Formula 89 2

1 − r2
Formula 90 Probable Error in correlation: 0.6745 
N
Formula 91 Error Limits of Population Correlation Coefficient: r  PE
P Q V
Formula 92 Price Relatives: n , Quantity Relatives: n , Value Relatives: n
P0 Q0 V0
Pn
Formula 93 Simple Aggregative Index:  100
P0
Pn

Formula 94 P0
Simple Average of Relatives – Method Index:
n
Laspeyres Index (weight – base year quantity weight)
Formula 95 PnQ 0
 100
P0 Q 0
Paasche’s Index (weight – current year quantity weight)
Formula 96 PnQ n
 100
P0 Q n
Formula 97 Marshall-Edgeworth Index (weight – sum of both current and base quantity)
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Pn ( Q 0 + Q n )
 100
P0 ( Q 0 + Q n )
Fisher’s Ideal Index: GM of Laspeyres Index and Paasche’s Index
Formula 98 PnQ 0 PnQ n
  100
P0Q 0 P0Q n
Bowley’s Index: AM of Laspeyres Index and Paasche’s Index
PnQ 0 PnQ n
Formula 99 +
P0Q 0 P0Q n
 100
2

About CA. Pranav Popat Sir

• He is a Chartered Accountant (Inter and Final Both Groups in First Attempt) with
6+ years of experience.
• He is an Educator by Passion and Choice (Dil Se )
• He teaches subjects of Maths, LR and Stats (Paper 3) at CA Foundation Level and
Cost & Management Accounting (Paper 3) at CA Intermediate Level.

Hope this formula book helps you in revising all formulas and become helpful to you
during exam time, I made this with my whole heart, make best use of it and I just
want one thing in return – share these notes to every student who really needs this.
Wishing you ALL THE BEST for upcoming examinations, see you soon in Inter
Costing!!!
Ab mushkil nahi kuch bhi !! nahi kuch bhi !!

With Lots of Love

CA. Pranav Popat (P2 SIR)

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