How do you work out types of wool, amounts and needle size?
You need to look at your pattern for the suggested needle size and the gauge the garment is knit in. Then you need to look at the substitute yarns you want to use for something that knits to that gauge on that needle size (or close to it). In general, what you knew as 2 ply yarn is now referred to as baby/sock/fingering yarn and knits on size 0 to 3 US needles, 3 ply is now sport or DK and knits on size 4 – 6, sometimes 7 US needles, 4 ply or worsted knits on 7 – 9 needles, bulky/chunky knits on size 10 and up, super bulky, when you can find it, knits on size 15 and up.
No formula that I know of, but the staff in the wool department/shop will help with wool and needle problems. I find different brands of wool even though they are all supposed to be 4ply, double knit etc give different results. The only way I’ve found is by knitting a square as it says in the pattern. If the square is bigger than it should be I use smaller needles.