Probability:

Basic Counting Techniques Permutations and Combinations

Permutations deals with arrangements:
If one thing can be done in n1 ways and second can be done in n2 ways and
third in n3 ways and so forth, then the number of different ways in which they can
be done is:
n1 x n2 x n3 nx ways
If one has to arrange an array of (n numbers or characters) in to different
orders then the number of permutations of n objects can be done using following
formula: where P is permutation
n

Pn = n!

When there is a scenario of arranging n different object taken r times.

n

Pr = n! / (n-r)!

When there is a scenario of arranging when repetition is allowed

n

Pr = nr

When there is a scenario of arranging when they are not all different
P= n!/n1!. n2!. n3!. nk!
Combination deals with selection:
Combination means selection consisting of r objects chosen from n different
objects.
n

Cr = n! / r!(n-r)!

Regression
The dependence of one variable on the other variable is termed as regression.
Regression is a statistical device or procedure that helps estimating the value of one
variable when the other variable is provided.
The variable whose value is to be determined is called dependent variable Y
The variable whose value is given is called independent variable X
When the two variable are found strongly to be related, and are put through a
mathematical equation as below:
For linear relationship Y=a+bX

When value of Y is required on X (Y on X), b=n XY-(X) (Y) / nX 2-(X)2

and a = yy bxy , yy = Y/n and xy = X/n

Similarly when value of X is required on Y (X on Y), d=n XY-(X) (Y) / nY 2-(Y)2

and c = xy d yy , yy = Y/n and xy =X/n

is called regression equation. In above equation: a is called the regression constant

and b is called the regression coefficient.

Coefficient of Correlation: The coefficient of correlation is the numerical measure

of strength of the linear relationship between two variables. It is denoted by r and is
defined as:

r = n XY (X)( Y) /

n X 2( X )2 n Y 2( Y )2

Estimation
Estimation means to estimate the unknown value of a population parameter by help
of sample data.
Estimator stands for the rule or formula that is used to estimate a parameter
whereas an estimate stands for the numerical value obtained by substituting the
sample observation in the formula.
xy =1+2+3/3 = 2, 2 is estimate or and formula is estimator
When an estimate for the unknown population parameter is expressed by single
value it is called point estimate.
Point estimate= Avg. height of random sample of 40 students i.e xy =63
Interval estimate = Avg. height is between 61 and 65
Confidence interval is the degree of confidence on the value that lie between the
upper and lower value of interval estimate. If the confidence interval is 95% then
the probability that interval contains the true parameter value out 100 is 95.
CASE I - Confidence interval for population mean (if is unknown, n 30
replace by s)
When SD of population () is known
Then a (1-) 100% confidence interval for is

xy

Z
2

CASE II - Confidence interval for population mean (if is unknown, n <

30)
When SD of population () is unknown
Then a (1-) 100% confidence interval for is

xy
Where

t
2

s
n

xy = X/n and s =

( x x )
n1

CASE III - Confidence interval for difference between two population mean

When S.D of population (i.e 1 and 2) are known (if is unknown, n1 and n2
30 replace 1 by s1 and 2 by s2)

Then a (1-) 100% confidence interval for 1 - 2 is

(xy 1 - xy 2) =

Z
2

21 22
+
n1 n 2

CASE IV - Confidence interval for difference between two populations

mean
When S.D of population (i.e 1 and 2) are unknown (if is unknown, n1 and
n2 < 30 replace 1 by s1 and 2 by s2)
Then a (1-) 100% confidence interval for 1 - 2 is

(xy 1 - xy 2) =
and

Sp

t . Sp
2

= pooled standard deviation

n
n

( 21)s22
( 11) s +
n1 +n 22

S p=
2
1

1 1
+
n 1 n2