A lot of people seem to be somewhat clueless on how the Battle Stats are calculated in combat. Here's a basic rundown.

Strength: This controls how hard you hit for and how much you mitigate. Weapons help increase your Hits. Armor helps increase your mitigation.
Agility: This effects how OFTEN you hit and how often you strike first.
Stamina: Stamina effects your Maximum HP. Maximum HP is calculated by doing (Level+20)*1.25*Stamina.
Endurance: Endurance decides how long you fight before getting too tired to continue. Each hit you deal will lower the percentage of remaining Endurance. You will lose if you hit 0%.


Moderator notice: Updated formula.
Moderator notice: Updated formula. (01/18/13)