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Summary STK 210 Statistics – Sigma Notation, Variance & Correlation Explained | Full Study Guide with Examples

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These study notes explain Sigma notation and its applications in statistics for STK 210. The document provides clear explanations, formulas and full worked examples to help students understand key statistical calculations. Topics covered include: • Sigma notation and summation rules • Expanding sigma expressions • Mean calculation using sigma notation • Uncorrected and corrected sum of squares (USS & CSS) • Variance and standard deviation formulas • Covariance and correlation calculations • Bivariate data analysis • Covariance and correlation matrices • Coefficient of variation and standard error The notes include step-by-step examples and interpretations, making them useful for: • Exam preparation • Statistics assignments • Understanding statistical formulas used in data analysis.

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CHAPTER 1 — SIGMA NOTATION (FULL
EXPLANATION)
1. Why Sigma Notation Exists (The Idea First)
In statistics we constantly add many numbers.
Example: marks of students

48 + 71 + 69 + 56 + 67
This becomes impossible when we have 1000 observations.
So mathematics created a compact language for repeated addition.
The Greek letter:

Σ (called: sigma)
means:
“Add everything following the rule”


2. General Form
n
Σ xi
i=1
Read as:
Sum of xi from i = 1 to n
Meaning:

x1 + x2 + x3 + ... + xn


3. Understanding the Index (VERY IMPORTANT)
i = counting variable
n = number of observations
xi = the value of x at position i
So if n = 5:
i xi
1 x1
2 x2
3 x3
4 x4
5 x5

, 4. Examples
Example 1
7
Σ 2xi
i=4
Start at i=4 and stop at i=7:

2x4 + 2x5 + 2x6 + 2x7

Example 2
5
Σ xi yi²
i=1
Multiply x and y² for each observation:

x1y1² + x2y2² + x3y3² + x4y4² + x5y5²


RULES OF SIGMA NOTATION (MEMORISE — EXAM
QUESTIONS)
Rule 1 — Split a Sum
Σ (xi + yi) = Σ xi + Σ yi
Meaning: you can sum variables separately.


Rule 2 — Constant Multiple
Σ cxi = c Σ xi
You can move constants outside sigma.
Example:

Σ 5xi = 5 Σ xi


Rule 3 — Sum of a Constant
Σ c = nc
Because you add c exactly n times.
Example:

Σ 3 (5 terms) = 3 + 3 + 3 + 3 + 3 = 5(3) = 15


Combined Rule
Σ (axi + byi) = a Σ xi + b Σ yi

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