Econ 41 Final Formulas, UCLA Chetverikov

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11 Terms

1
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Equation, Null Hypothesis Testing H0: M = 0, H1: M > 1 Reject when...

(X - M)÷(σ÷n½) > Zα

2
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Equation, Null Hypothesis Testing H0: M = 0, H1: M < 1 Reject when...

(X - M)÷(σ÷n½) < -Zα

3
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Equation, Null Hypothesis Testing H0: M = 0, H1: M ≠ 1 Reject when...

|(X - M)÷(σ÷n½)| > Zα

4
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Probability Hard One: A =

(A∩B) ∪ (A∩B')

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IF INDEPENDENT P(A∩B) =

P(A)xP(B)

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IF INDEPENDENT P(A|B) =

P(A)

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CONDITIONAL PROBABILITY P(A|B) =

P(A∩B)/P(B)

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Discrete Random Variables E(x) = µ =

∑x f(x)

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Discrete Random Variables σ² =

E(x²) - (µ)²

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Binomial f(x) =

(nCx) p∧x (1-p)^n-x

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Poisson f(x) =