Table of Contents

Formulas .................................................................................................................................. 3
Week 1-2. Descriptive Statistics and Probability ................................................................ 7
1.1 Terms ............................................................................................................................. 7
1.2 Counting Techniques .................................................................................................. 7
1.3 Probability ..................................................................................................................... 8
1.4 Measures of Central Tendency, Variation and Position ........................................ 11
Week 3. Random Variables ................................................................................................. 13
3.1 Discrete and Continuous Random Variables .......................................................... 13
Week 4. Probability Distributions ....................................................................................... 14
4.1 Special Discrete Probability Distributions ............................................................... 14
Week 5 Normal Distribution................................................................................................ 16
5.1 Normal Curve Distribution ........................................................................................ 16
Week 6. Sampling Distributions ......................................................................................... 19
6.1 Sampling Distribution/ Mean and Variance of the Sampling Distribution ......... 19
6.2 Central Limit Theorem ............................................................................................... 19
Week 7. Estimation of Parameters...................................................................................... 20
7.1 Concepts ..................................................................................................................... 20
7.2 Point Estimate of a Population Mean ....................................................................... 20
7.3 Confidence Interval Estimates of the Population Mean ........................................ 21
7.4 Point Estimate for the Population Proportion ......................................................... 21
7.5 Interval Estimates for Population Proportions ........................................................ 22
Week 8. Hypothesis Testing ................................................................................................ 22
8.1 Test of Hypothesis ...................................................................................................... 22
8.2 Types of Error in Hypothesis Testing ....................................................................... 24
8.3 Hypothesis Test of a Population Mean .................................................................... 25
8.4 Hypothesis Test of a Population Proportion ........................................................... 25
8.5 Hypothesis Test of a Difference of Two Means (Population) ................................ 25
8.6 Hypothesis Test of a Difference of Two Means (Proportion) ................................ 26
8.7 Hypothesis Test of a Difference of Two Means (Paired Samples) ........................ 26
Week 9. Exploring Relationships ........................................................................................ 27
9.1 Bivariate Data/Correlation Analysis ......................................................................... 27
9.2 Pearson Product-Moment Correlation .................................................................... 28
9.3 Regression Analysis.................................................................................................... 29
9.4 Test of Rho................................................................................................................... 30
References ............................................................................................................................. 31
Formulas
Multiplication Counting by Cases Permutations Special
Rule Permutations
m1 + m2 + ⋯ mk n!
n Pr = (objects repeated)
a×b×⋯k (n − r)!
n!
n1 ! n2 ! ⋯ nk !
Circular Combinations Probability of an Complementary
Permutation Event Rule/Probability
n!
nC r = n Rule for
(n − 1)! (n − r)! r! P(A) =
N Complements
P(Ac ) = 1 − P(A)

Additive Rule of Probability Law of Total Probability

P(A ∪ B) = P(A) + P(B) − P(A ∩ B) 𝑘

P(A) = ∑ 𝑃(𝐵𝑖 )𝑃(𝐴|𝐵𝑖 )

𝑖=1

Bayes’ Rule
P(Br ∩ A) P(Br ) × P(A|Br ) P(Br ) × P(A|Br )
P(Br |A) = = = k
P(A) P(A) ∑i=1 P(Bi )P(A|Bi )

Mean Median Standard Standard Deviation

∑𝑥𝑖 𝑛+1 Deviation (Pop) (Sample)
𝑝𝑜𝑠 =
𝑁 2
∑(𝑥𝑖 − 𝜇)2 ∑(𝑥𝑖 − 𝑥̅ )2
√ √
𝑁 𝑛−1

Variance (Pop) Variance (Sample) IQR Coefficient of

∑(𝑥𝑖 − 𝜇)2 ∑(𝑥𝑖 − 𝑥̅ )2 𝐼𝑄𝑅 = 𝑄3 − 𝑄1 Variation
𝑁 𝑛−1 𝜎 𝑜𝑟 𝑠
× 100%
𝑚𝑒𝑎𝑛
Percentile Position Z-score
𝑛𝑘 𝑥𝑖 − 𝑚𝑒𝑎𝑛
𝑃𝑘 = 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
100

Discrete Random Variable

Mean Variance Standard Variation
∑ 𝑥 ∙ 𝑝(𝑥) [∑ 𝑥 2 ∙ 𝑝(𝑥)] − 𝜇𝑥2 √𝜎𝑥
 Uniform Distribution
Mean Variance Standard Variation
∑ 𝑥 ∙ 𝑝(𝑥) 2 2
[∑ 𝑥 ∙ 𝑝(𝑥)] − 𝜇𝑥 √𝜎𝑥

Binomial Distribution
Probability Mean Variance
( 𝑛𝑥 )𝑝 𝑥 (1 − 𝑝)𝑛−𝑥 𝑛𝑝 𝑛𝑝(1 − 𝑝)
Hypergeometric Distribution
Probability Mean Variance
C
k x × C
N−k n−x 𝑛𝑘 𝑛𝑘 𝑘 𝑁−1
(1 − ) ( )
N Cn 𝑁 𝑁 𝑛 𝑛−1
Poisson Distribution Conversion of 𝑥 to 𝑧.
𝑒 −𝜇 ∙ 𝜇 𝑥 𝑥−𝜇
𝑧=
𝑥! 𝜎
Sampling Distribution
Mean Standard Deviation Variance (w/ replacement)
𝜇𝑋̅ = 𝜇𝑋 𝜎𝑋 𝜎𝑋2
𝜎𝑋̅ = 𝜎𝑋̅2 =
√𝑛 𝑛
Variance (w/o replacement)
𝜎𝑋2 𝑁 − 𝑛
𝜎𝑋̅2 = ×
𝑛 𝑁−1
Estimation of Population Mean
Population Mean Case 1
𝜇 = 𝑥̅ 𝜎
𝑒 = 𝑍𝑎
2 √𝑛

Case 2A Case 2B
𝑠 𝑠
𝑒 = 𝑍𝑎 𝑒 = 𝑡𝑎
2 √𝑛 2 √𝑛
𝑑𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝑓𝑟𝑒𝑒𝑑𝑜𝑚 (𝑑𝑓) = 𝑛 − 1
Estimation of Population Proportion
Population Proportion Interval Estimation
𝑥
𝑝 = 𝑝̂ = 𝑝̂ (1 − 𝑝̂ )
𝑛 𝑒 = 𝑍𝑎 √
2 𝑛
Sample Size Determination
𝑍𝑎 2
2
𝑛= 𝑝̂ (1 − 𝑝̂ )
𝑒2
Hypothesis Testing Population Mean
Case 1 Case 2
𝑥̅ − 𝜇0 𝑥̅ − 𝜇0
𝑧= 𝜎 𝑡= 𝑠
√𝑛 √𝑛
𝑑𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝑓𝑟𝑒𝑒𝑑𝑜𝑚 (𝑑𝑓) = 𝑛 − 1

Hypothesis Testing Population Proportion

Case 1
𝑥̅1 − 𝑥̅2 𝑥̅1 − 𝑥̅ 2
𝑧= 𝑜𝑟 𝑧 =
𝜎12 𝜎22 𝑠12 𝑠22
√ √
𝑛1 + 𝑛2 𝑛1 + 𝑛2

Case 2
𝑥̅1 − 𝑥̅2
𝑡=
1 1
√𝑠 2𝑝 ( + )
𝑛1 𝑛2
(𝑛1 − 1)𝑠 21 + (𝑛2 − 1)𝑠 22
𝑝𝑜𝑜𝑙𝑒𝑑 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒(𝑠 2𝑝 ) =
𝑛1 + 𝑛2 − 2
𝑑𝑓 = 𝑛1 + 𝑛2 − 2

Hypothesis Testing Difference of Two Means

𝑝̂1 − 𝑝̂2
𝑧= 𝑥1 + 𝑥2
1 1
𝑃̅ (1 − 𝑃̅) (𝑛 + 𝑛 ) 𝑃̅ =
1 2 𝑛1 + 𝑛2

Hypothesis Testing Paired Samples

𝑑̅
𝑡= 𝑠
𝑑
√𝑛
Pearson Product-Moment Correlation Coefficient
∑(𝑥𝑖 − 𝑥̅ )(𝑦𝑖 − 𝑦̅)
𝑟=
√∑(𝑥𝑖 − 𝑥̅ )2 ∑(𝑦𝑖 − 𝑦̅)2

Estimated Regression Equation Test of Rho

𝑦̂ = 𝑏0 + 𝑏1 𝑥 𝑟√𝑛 − 2
𝑡=
√1 − 𝑟 2
𝑑𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝑓𝑟𝑒𝑒𝑑𝑜𝑚 (𝑑𝑓) = 𝑛 − 2
Week 1-2. Descriptive Statistics and Probability
1.1 Terms

Statistics- collection, organization, presentation, and analysis of data.

Descriptive Statistics- collection, organization, and presentation of data sets.
Inferential Statistics- analysis of data sets.
Experiment- a process that generates a set of data (e.g. Tossing a coin).
Sample Space- the set of all possible outcomes of a statistical experiment, denoted
by S (e.g. S= {Head, Tails}).
Sample Point- an element of a sample space (e.g. Head).
Event- a subset of a sample space (e.g. obtaining exactly two heads when tossing 2
coins).

Null Event/Null Space- an event that is impossible to happen, denoted by Ø (e.g.

rolling a “7” when a 6 sided die is thrown).
Population- target/all number of involved.
Sample- subset of the population.
Parameter- a number describing a whole population.
Statistic- a number describing a sample.

1.2 Counting Techniques

Fundamental Counting Principle/Multiplication Rule- Independent events A, B ⋯ K

respectively have a, b ⋯ k outcomes, the total number of outcomes for events A, B ⋯ K
together is

a×b×⋯k
Note: Use this when there are multiple independent events, each with their own
outcomes, and you want to know how many outcomes there are for all the events
together.
Counting by Cases- If an experiment has k cases, then the total number of outcomes
of the experiment is

m1 + m2 + ⋯ mk

Permutations- process of arranging objects in a linear or circular manner, the order of

the objects matter. Formula:
n!
n Pr =
(n − r)!
Special Cases
• n objects where some objects are repeated
n!
n1 ! n2 ! ⋯ nk !
• n distinct objects in a circular manner

(n − 1)!
Note: Use this when you are counting the number of ways to choose and arrange a
given number of objects from a set of objects.

Combinations- process of selecting r objects from a group of n objects, the order of

the objects is not important. Formula:
n!
nC r =
(n − r)! r!
Note: Use this when you are counting the number of ways to choose a certain
number of objects from a set of objects (the order/arrangement of the objects
doesn't matter).

1.3 Probability

Probability- the likelihood that a certain event will happen.

• The probability of an event A [P(A)] is always between 0 and 1 (includes both 0

and 1).
• The probability of a null event [P(Ø )] is 0.
 • The probability of the sample space [P(S)] is 1.
Probability of an event A is (n- number of elements of event A, N- the number of
elements of the sample space).
n
P(A) =
N
Event Operations

• Union (∪)- the union of 2 events is the collection of all outcomes that are
elements of one or the other of the sets, or of both of them. It corresponds to
combining descriptions of the two events using the word “or”. e.g. A ∪ B
• Intersection (∩)- the intersection of 2 events is the collection of all outcomes
that are elements of both of the sets. It corresponds to combining descriptions
of the two events using the word “and”. e.g. A ∩ B
• Complement (A′ or Ac )- the complement of an event is the event containing
elements from the sample space that are not in the event. e.g. for S={1,2,3},
A={1,2}, Ac ={3}.

Mutually Exclusive Events- 2 events whose intersection is an empty set/means that the
intersection is impossible to happen.

Additive Rule of Probability

P(A ∪ B) = P(A) + P(B) − P(A ∩ B)

Complementary Rule/Probability Rule for Complements

P(Ac ) = 1 − P(A)

Conditional Probability- the probability of an event B occurring when it is known that

an event A has already occurred.
P(B ∩ A)
P(B|A) =
P(A)
Multiplicative Rule

P(B ∩ A) = P(A) × P(B|A)

Independent Events- 2 events are independent if the occurrence of 1 does not affect
the other. 2 events are independent if

P(A ∩ B) = P(A) × P(B)

Law of Total Probability- if the events 𝐵1 , ⋯ 𝐵𝑘 constitute a partition of the sample

space, where 𝑃(𝐵𝑖 ) ≠ 0 for all 𝑖, then the probability of event A is
𝑘

P(A) = P(B1 )𝑃(𝐴|𝐵1 ) + ⋯ 𝑃(𝐵𝑘 )𝑃(𝐴|𝐵𝑘 ) = ∑ 𝑃(𝐵𝑖 )𝑃(𝐴|𝐵𝑖 )

𝑖=1

Bayes’ Rule- if the events 𝐵1 , ⋯ 𝐵𝑘 constitute a partition of the sample space, where
𝑃(𝐵𝑖 ) ≠ 0 for all 𝑖, and the probability for any event A in the sample space is not 0,
then

P(Br ∩ A) P(Br ) × P(A|Br ) P(Br ) × P(A|Br )

P(Br |A) = = = k
P(A) P(A) ∑i=1 P(Bi )P(A|Bi )
1.4 Measures of Central Tendency, Variation and Position

Central Tendency

• Mean (Average Value)

o Population (𝜇)

∑𝑥𝑖
𝑁
o Sample (𝑥̅ )

∑𝑥𝑖
𝑛
• Median (Middlemost Value)
𝑛+1
Median Position =
2
Note: if the set is even numbered, take the average of the middle 2 numbers (Median
position rounded up and rounded down, e.g. Median Position=7.5, take 7th and 8th).

• Mode- most frequently occurring observation

Variation

• Range- ℎ𝑖𝑔ℎ𝑒𝑠𝑡 𝑣𝑎𝑙𝑢𝑒 − 𝑙𝑜𝑤𝑒𝑠𝑡 𝑣𝑎𝑙𝑢𝑒

• Standard Deviation
o Population (𝜎)

∑(𝑥𝑖 − 𝜇)2
√
𝑁

o Sample (𝑠)

∑(𝑥𝑖 − 𝑥̅ )2
√
𝑛−1
 • Variance
o Population (𝜎 2 )

∑(𝑥𝑖 − 𝜇)2
𝑁
o Sample (𝑠 2 )

∑(𝑥𝑖 − 𝑥̅ )2
𝑛−1
• Interquartile Range (IQR)

𝐼𝑄𝑅 = 𝑄3 − 𝑄1
• Coefficient of Variation
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
𝐶𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 𝑜𝑓 𝑉𝑎𝑟𝑖𝑎𝑡𝑖𝑜𝑛 = × 100%
𝑚𝑒𝑎𝑛

Position

• Quartiles (𝑄1 𝑡𝑜 𝑄3 )- increments of 25%

o 𝑄1 - 25% below, 75% above
o 𝑄2 - 50% below, 50% above, same as median
o 𝑄3 - 75% below, 25% above
• Decile (𝑑1 𝑡𝑜 𝑑9 )- increments of 10%
• Percentile (𝑃1 𝑡𝑜 𝑃99 )- increments of 1%
o 𝑄1 = 𝑃25
o 𝑄2 = 𝑃50
o 𝑄3 = 𝑃75
𝑛𝑘
𝑃𝑘 =
100
xth +(x+1)th
If Pk is an integer, k th percentile =
2

If Pk is a decimal, k th percentile = (x + 1)th

Note: 𝑥 is 𝑃𝑘 rounded down

• Z-score- how many standard deviations away from the mean.

𝑥𝑖 − 𝑚𝑒𝑎𝑛
𝑍 − 𝑠𝑐𝑜𝑟𝑒 =
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
Week 3. Random Variables
3.1 Discrete and Continuous Random Variables

Random Variable (𝑋 )- a variable whose possible values are numerical outcomes of a

random phenomenon.

Discrete Random Variable

• A random variable which may take on only a countable number of distinct

values. Usually are counts (e.g. number of children in a family).
• Probability Mass Function 𝑝(𝑥)- a list of probabilities associated with each of its
possible values.
o Each probability in the probability mass function must be between 0 and
1, inclusive (0 ≤ 𝑝(𝑥) ≤ 1).
o The sum of all probabilities in a probability mass function is equal to 1
(∑ 𝑝(𝑥) = 𝑝1 + 𝑝2 ⋯ 𝑝𝑘 = 1).
• Mean (𝜇𝑥 /𝐸[𝑋])

∑ 𝑥 ∙ 𝑝(𝑥)

• Variance (𝜎𝑥2 /𝑉𝑎𝑟[𝑋])

[∑ 𝑥 2 ∙ 𝑝(𝑥)] − 𝜇𝑥2 or ∑(𝑥 − 𝜇𝑥 )2 ∙ 𝑝(𝑥)

• Standard Variation (𝜎𝑥 /√𝑉𝑎𝑟[𝑋])

√𝜎𝑥 or √𝑉𝑎𝑟[𝑋]

Continuous Random Variable- a random variable which takes an infinite number of

possible values. Usually are measurements (e.g. height).
Week 4. Probability Distributions
4.1 Special Discrete Probability Distributions

Uniform Distribution

• Conditions
o The probability of each outcome of the experiment has equal
probability.
• Mean (𝜇𝑥 /𝐸[𝑋])

∑ 𝑥 ∙ 𝑝(𝑥)

• Variance (𝜎𝑥2 /𝑉𝑎𝑟[𝑋])

[∑ 𝑥 2 ∙ 𝑝(𝑥)] − 𝜇𝑥2 or ∑(𝑥 − 𝜇𝑥 )2 ∙ 𝑝(𝑥)

Binomial Distribution

• Conditions
o Experiment consists of 𝑛 independent repeated trials.
o Each trial results either in a success or failure.
o The probability of success (𝑝) is constant.
• Formula (𝑥 is the number of successes):

( 𝑛𝑥 )𝑝 𝑥 (1 − 𝑝)𝑛−𝑥 𝑜𝑟 nC x 𝑝 𝑥 (1 − 𝑝)𝑛−𝑥
• Mean (𝜇𝑥 /𝐸[𝑋])

𝐸[𝑋] = 𝑛𝑝
• Variance (𝜎𝑥2 /𝑉𝑎𝑟[𝑋])

𝑉𝑎𝑟[𝑋] = 𝑛𝑝(1 − 𝑝)
Hypergeometric Distribution

• Conditions
o A random sample size (𝑛) is selected from a population (𝑁).
o 𝑘 of the population (𝑁) are considered success and the rest (𝑁 − 𝑘 ) are
considered failures.
• Formula (𝑥 is the number of successes):

( 𝑘𝑥 )( 𝑁−𝑘
𝑛−𝑥 ) kC x × N−k Cn−x
𝑜𝑟
( 𝑁𝑛 ) N Cn

• Mean (𝜇𝑥 /𝐸[𝑋])

𝑛𝑘
𝐸[𝑋] =
𝑁
• Variance (𝜎𝑥2 /𝑉𝑎𝑟[𝑋])

𝑛𝑘 𝑘 𝑁−1
𝑉𝑎𝑟[𝑋] = (1 − ) ( )
𝑁 𝑛 𝑛−1

Poisson Distribution

• Conditions
o Experiments yield the number of outcomes occurring during a given
time interval or in a specified region.
• Formula:

𝑒 −𝜇 ∙ 𝜇 𝑥
𝑥!
• The mean and variance are both 𝜇.
Week 5 Normal Distribution
5.1 Normal Curve Distribution

Normal Distribution- a probability density function for a continuous random variable.

Probability Density Function- the function describing the probability distribution of a
continuous random variable, the probability is the area under the curve and above
the x-axis

Normal Curve

• Graph of the normal distribution.

• Bell-shaped and symmetrical about the mean 𝜇.
• Contains tails that are asymptotic to the horizontal axis as they move away from
the mean.
• Total area under the curve is 1.
• Mean=Median=Mode

Standard Normal Distribution- a normal distribution with 𝜇 = 0 and 𝜎 = 1. Denoted by

the letter 𝑍.
Normal Probabilities are obtained using the z-table for standard normal distribution.
Note: The probabilities listed are the areas under the curve to the left of 𝑧.
Conversion of 𝑥 to 𝑧.
𝑥−𝜇
𝑧=
𝜎

Week 6. Sampling Distributions

6.1 Sampling Distribution/ Mean and Variance of the Sampling
Distribution

Sampling Distribution- a probability distribution of a statistic.

• Mean

𝜇𝑋̅ = 𝜇𝑋
• Standard Deviation
𝜎𝑋
𝜎𝑋̅ =
√𝑛
• Variance (with replacement)

𝜎𝑋2
𝜎𝑋̅2 =
𝑛
• Variance (without replacement)

𝜎𝑋2 𝑁 − 𝑛
𝜎𝑋̅2 = ×
𝑛 𝑁−1

6.2 Central Limit Theorem

1. If a random variable is normally distributed, sampling distribution of the mean

is also normally distributed.
2. If a random variable is known to be normal, as 𝑛 becomes large, sampling
distribution of the mean becomes more normally distributed.
Week 7. Estimation of Parameters
7.1 Concepts

Estimation is concerned with determining the true values of unknown parameters of

the population.
The statistics computed from samples is used in determining the values of the
parameters of the population, which are usually unknown.

Estimator- a rule or formula used for obtaining a value of the parameter of interest.
Estimate- a numerical value that resulted from substituting the sample values in the
formula.

Point Estimate- estimating a population parameter by a single number.

Confidence Interval Estimate- estimating a population parameter using an interval
with a certain degree of confidence. (Form:[𝑥̅ − 𝐸𝑟𝑟𝑜𝑟, 𝑥̅ + 𝐸𝑟𝑟𝑜𝑟]).

Degree of Confidence/Confidence Level [(1 − 𝛼)(100%)]- the probability that the

interval estimate contains the true value of the parameter.

7.2 Point Estimate of a Population Mean

The best point estimate for the population mean is the sample mean

𝜇 = 𝑥̅
7.3 Confidence Interval Estimates of the Population Mean

Confidence Interval: 𝑥̅ ± 𝑒
Case 1: 𝜎 is known
𝜎
𝑒 = 𝑍𝑎
2 √𝑛
Case 2A: 𝜎 is unknown and 𝑛 is large (𝑛 ≥ 30)
𝑠
𝑒 = 𝑍𝑎
2 √𝑛
Case 2B: 𝜎 is unknown and 𝑛 is small (𝑛 < 30)
𝑠
𝑒 = 𝑡𝑎
2 √𝑛
𝑑𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝑓𝑟𝑒𝑒𝑑𝑜𝑚 (𝑑𝑓) = 𝑛 − 1
𝑎
Note: 𝑍𝑎 and 𝑡𝑎 are the z and t scores with an area to the right
2 2 2

Sample values

CONFIDENCE LEVEL  = 1- confidence level  Z

2 2
90% 0.10 0.05 1.645
95% 0.05 0.025 1.96
99% 0.01 0.005 2.575

7.4 Point Estimate for the Population Proportion

The sampling distribution of 𝑝̂ is approximately normally distributed if 𝑛𝑝 > 5 or

𝑛(1 − 𝑝) > 5.
The best point estimate for the population proportion is the sample proportion.
𝑥
𝑝 = 𝑝̂ =
𝑛
7.5 Interval Estimates for Population Proportions

Confidence Interval: 𝑥̅ ± 𝑒

𝑝̂ (1 − 𝑝̂ )
𝑒 = 𝑍𝑎 √
2 𝑛

Sample Size Determination

Given confidence level (1 − 𝛼 ), sample proportion 𝑝̂ and a maximum error 𝑒, sample

size is

𝑍𝑎 2
2
𝑛= 𝑝̂ (1 − 𝑝̂ )
𝑒2

Week 8. Hypothesis Testing

8.1 Test of Hypothesis

Null Hypothesis (𝐻0 )- statistical hypothesis that you want to test.

Alternative Hypothesis (𝐻𝑎 )- statistical hypothesis that you want to prove.

Two-tailed Test Upper Tail-One tailed Test Lower Tail-One tailed Test
𝐻0 : 𝜇 = 85 𝐻0 : 𝜇 = 85 𝐻0 : 𝜇 = 85
𝐻𝑎 : 𝜇 ≠ 85 𝐻𝑎 : 𝜇 > 85 𝐻𝑎 : 𝜇 < 85
Note: The equal sign always goes with the null hypothesis; but this does not prevent
you from having a null hypothesis which is ≤ or ≥.

Types of Testing
• Two-Tailed Test- if the problem asked you to show if the mean is different from
the hypothesized value.
• Upper Tailed Test- if the problem asked you to show if the mean is greater than
the hypothesized value.
• Lower Tailed Test- if the problem asked you to show if the mean is less than the
hypothesized value.
Level of Significance (𝛼 )- the probability of committing a type 1 error/total area of the
rejection region.
Test Statistic Value – value computed from the sample data.

• Case 1- when the population standard deviation (𝜎) is given or population

standard deviation (𝜎) is not given, but 𝑛 ≥ 30.
𝑥̅ − 𝜇0
𝑧= 𝜎
√𝑛
• Case 2- when the population standard deviation (𝜎) is not given, and 𝑛 < 30.
𝑥̅ − 𝜇0
𝑡= 𝑠 ; 𝑑𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝑓𝑟𝑒𝑒𝑑𝑜𝑚 (𝑑𝑓) = 𝑛 − 1
√𝑛
Note: Case 1 uses the z table, Case 2 uses the t table.
Critical Region- rejection region.
Critical Value/Values- Value/values that separates the acceptance from rejection
region.

• Two-tailed test
o The rejection region is on both ends of the curve.
o The critical region is ±𝑍𝛼
2

• Upper-tail test
o The rejection region is on the right side (positive area)
o The critical region is 𝑍𝛼
• Lower-tail test
o The rejection region is on the left side (negative area)
o The critical region is −𝑍𝛼
𝛼
Note: Two-tailed tests have the areas halved ( ) because the total rejection area must
2
be 𝛼 and the rejection area is on both sides.

8.2 Types of Error in Hypothesis Testing

Type 1 Error- Rejecting a true null hypothesis

Type 2 Error- Accepting a false null hypothesis
8.3 Hypothesis Test of a Population Mean

1. State the null and the alternative hypothesis.

2. Determine the level of significance.
3. Compute the test statistical value.
4. Determine the critical region.
5. Make a decision- Reject the null hypothesis when the computed test statistic
value falls under the rejection region.

8.4 Hypothesis Test of a Population Proportion

Same steps with population mean testing, but with a different test statistic value.

𝑃̂ − 𝑃0
𝑧=
√𝑃0 (1 − 𝑃0 )
𝑛

8.5 Hypothesis Test of a Difference of Two Means (Population)

Since it is still hypothesis testing, same steps apply, only the test statistic value is
changed.

Case 1. When the population standard deviation (𝜎) is given or population standard
deviation (𝜎) is not given but, 𝑛1 , 𝑛2 ≥ 30
𝑥̅1 − 𝑥̅2 𝑥̅1 − 𝑥̅2
𝑧= 𝑜𝑟 𝑧 =
𝜎12 𝜎22 𝑠12 𝑠22
√ √
𝑛1 + 𝑛2 𝑛1 + 𝑛2
Case 2. when the population standard deviation (𝜎) is not given, but known to be
equal and 𝑛1 , 𝑛2 < 30
𝑥̅1 − 𝑥̅2
𝑡=
1 1
√𝑠 2𝑝 ( + )
𝑛1 𝑛2
(𝑛1 − 1)𝑠 21 + (𝑛2 − 1)𝑠 22
𝑝𝑜𝑜𝑙𝑒𝑑 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒(𝑠 2𝑝 ) =
𝑛1 + 𝑛2 − 2
𝑑𝑓 = 𝑛1 + 𝑛2 − 2

8.6 Hypothesis Test of a Difference of Two Means (Proportion)

𝑝̂1 − 𝑝̂ 2
𝑧=
1 1
𝑃̅(1 − 𝑃̅) ( + )
𝑛1 𝑛2
𝑥1 + 𝑥2
𝑃̅ =
𝑛1 + 𝑛2

8.7 Hypothesis Test of a Difference of Two Means (Paired Samples)

Paired/Matched Data- data that are connected with each other and cannot be
interchanged.
Matched samples are used to know the difference between the true means of paired
data.
 Two-tailed Test Interpretation
𝐻0 : 𝜇𝑑 = 0 𝐻0 : No significant difference in the
𝐻𝑎 : 𝜇𝑑 ≠ 0 population means.
𝐻𝑎 : There is a significant difference in
the population means.
Interpretation
𝐻0 : 𝜇𝑑 = 0 𝐻0 : No significant difference in the
𝐻𝑎 : 𝜇𝑑 < 0 population means.
𝐻𝑎 : Population mean 1 is less than
population mean 2; the difference is
negative.
Interpretation
𝐻0 : 𝜇𝑑 = 0 𝐻0 : No significant difference in the
𝐻𝑎 : 𝜇𝑑 > 0 population means.
𝐻𝑎 : Population mean 1 is greater than
population mean 2; the difference is
positive.
Formula (𝑑𝑓 = 𝑛 − 1):

𝑑̅
𝑡= 𝑠
𝑑
√𝑛

Week 9. Exploring Relationships

9.1 Bivariate Data/Correlation Analysis

Bivariate Data- Data for two variables, usually two types of related data.
Scatter Plot/Scatter Diagram- a plot of the pairs of values of two variables in a
rectangular coordinate plane displaying linear the relationship between the two
variables. It is used as a tool to analyze graphically the association between two
variables.

The relationship between two variables can be described by looking at the

trend/pattern of the scatter plot.
Types of Trends

• Upward straight line

• Downward straight line
• Curved or circular pattern
• No Pattern

Strength

• Strongly Visible (points are closer to each other)

• Weakly Visible (points are farther from each other)

Correlation Coefficient- a measure of the strength of the linear association between

two variables.

Population Correlation Coefficient (𝜌)- value ranges from -1 (perfect negative

correlation) to +1 (perfect positive correlation). The closer the correlation coefficient
is to either -1 or +1, the stronger the linear relationship is.

9.2 Pearson Product-Moment Correlation

Pearson Product-Moment Correlation Coefficient/Sample Correlation Coefficient (𝑟)-

estimates the population coefficient correlation coefficient.

• A positive value of 𝑟 means a direct relationship between the two variables.

• A negative value of 𝑟 means an inverse relationship between the two variables.

Formula:

∑(𝑥𝑖 − 𝑥̅ )(𝑦𝑖 − 𝑦̅)

𝑟=
√∑(𝑥𝑖 − 𝑥̅ )2 ∑(𝑦𝑖 − 𝑦̅)2
𝑟 can also be found using Microsoft Excel by using “Regression” under data analysis.
𝑟= Multiple R with the sign of the x variable coefficient.

Coefficient of Determination (𝑟 2 )- a measure that gives the proportion of variability in

the dependent variable that is accounted for by the independent variable. 𝑟 2 % of the
variability of 𝑦 can be explained by 𝑥.

9.3 Regression Analysis

Simple Linear Regression Model- the equation that describes how a variable 𝑦 is
related to a variable 𝑥 and an error term 𝜀.

𝑦 = 𝛽0 + 𝛽1 𝑥 + 𝜀
Where:

𝑦- dependent variable
𝑥 - independent variable
𝛽0 𝑎𝑛𝑑 𝛽1 - are parameters of the model (measures computed using population
data)
Estimated Regression Equation- since population data is usually unknown, estimates
of 𝛽0 and 𝛽1 (𝑏0 and 𝑏1 ) using sample data may be used.

𝑦̂ = 𝑏0 + 𝑏1 𝑥
Note: 𝑦̂ is only the estimated value of 𝑦

In the estimated simple linear regression equation, 𝑏0 is the y-intercept and 𝑏1 is the
slope. 𝑏0 and 𝑏1 are called the coefficients of the estimated regression equation.

𝑏0 is the value of y when the dependent variable (𝑥 ) is 0, as such in some applications

the interpretation of it is meaningless.

𝑏1 gives the increase in value for every one unit increase in 𝑥 . If it is positive, then 𝑦 is
directly related to 𝑥 . If it is negative, then 𝑦 is inversely related to 𝑥 .
Note: The coefficients can be found using the same way the Pearson Product-
Moment Correlation Coefficient is found in excel.

9.4 Test of Rho

The hypothesis test of Rho (𝜌) is done in the same way as other hypothesis tests, but
with a different test statistic value.

𝑟 √𝑛 − 2
𝑡=
√1 − 𝑟 2
𝑑𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝑓𝑟𝑒𝑒𝑑𝑜𝑚 (𝑑𝑓) = 𝑛 − 2
 References
Shafer & Zhang. (2019). Introductory Statistics.
https://stats.libretexts.org/Bookshelves/Introductory_Statistics/Book%3A_Intro
ductory_Statistics_(Shafer_and_Zhang)
Pearson Correlation Coefficient Calculator. (n.d.)
https://www.socscistatistics.com/tests/pearson/
Various personal notes/Handouts given to me by our teacher last year (STEM)