Formulas

Binomial Distribution
X Bin (n, P )
Probability function
P (X = x) =

n!
nx
P x (1 P )
x! (n x)!

E [X] = nP
V ar (X) = nP (1 P )

Poisson Distribution
X Poisson ()
Probability function
P (X = x) =

e x
x!

E [X] =
V ar (X) =

Uniform Distribution
X U [a, b]
Probability density function
(
f (x) =

1
ba

Cumulative distribution function

F (x) =

if a x b
otherwise
xa
ba

for a x b
E [X] =

a+b
2

V ar (X) =

(ba)2
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Normal Distribution
X N , 2

Probability density function

f (x) =
for x (, )
E [X] =
V ar (X) = 2

1
2 2

(x)2
2 2

Exponential Distribution
T Exp ()
Probability density function
f (t) = et
for t > 0
Cumulative distribution function
F (t) = 1 et
for t > 0
E [T ] =

V ar (T ) =

1
2

Distributions
Assume that the population distribution is normal with mean and variance 2
Then
2n1 =

(n 1) s2
2

Hypothesis testing
Overall Significance
F =

SSR/K
,
SSE/ (n K 1)

where K is the number of independent variables and n is the number of observations. Reject H0 if
F > FK,nK1,
Complete Model v.s. Restricted Model
F =

(SSE (Restricted) SSE) /R

,
s2e

where R is the number of additional independent variables. Reject H0 is F > FR,nKR1,

Figure 1: Standard Normal Distribution

Figure 2: F Distribution Table

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Figure 3: Student t Distribution Table

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