ECO 329 - Things to remember

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12 Terms

1
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Permutation formula

n! / (n-k)!

2
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Combinations formula

n! / k! * (n-k)!

3
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Binomial probability (at least one) formula

1 - (1-p)n

4
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P(exactly one)

P(A or B) - P(A and B)

5
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E[X] of a uniform distribution

a + b / 2

6
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Standardization formula

x - miu / square root of variance

7
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For the normal distribution: P(X <= x) =

phi(Z)

8
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For the normal distribution: P(X > x) =

1 - phi(Z)

9
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For the normal distribution: P(a < X < b) =

phi(Zb) - phi(Za)

10
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For the normal distribution: phi(-x) =

1 - phi(x)

11
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Positive correlation: min{x, y}, range[x, y]

min{P(A), P(B)}, range[P(A) * P(B), min]

12
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Negative correlation: max{x, y}, range[x, y]

max{0, P(A) + P(B) - 1}, range[max, P(A) * P(B)]