Self-Learning Module for Grade 11

Mathematics
Statistics and Probability

CHAPTER I: RANDOM VARIABLES AND PROBABILITY DISTRIBUTION

LESSON 1: RANDOM VARIABLE (Discrete and Continuous)

Introduction
In the study of basic probability, you have learned that an experiment is any
activity which can be done repeatedly under similar condition. The set of all possible
outcomes of an experiment is called the sample space. You have also learned how to
mathematically list the possible outcome of a given experiment. In tossing a coin, for
instance, the possible outcomes are turning up a head or a tail.

This module will help you understand the process of illustrating random
variables as well as distinguishing between discrete and continuous random variables.
God bless and enjoy learning.

How to Use this Module

This Self - learning Kit (SLK) will help you understand the concepts on Random
Variables. As you go through this lesson, think of the following questions: How will you
distinguish random variables as to discrete or continuous? To find the answer, perform
each activity.

PRE-TEST

Before studying this module, take this pre - test to find out how much you
already know about the topic covered. Shade the letter of the correct answer.

1. Discrete variable is from qualities that can be

A B C D A. Measured C. Both A and B
B. Counted D. none of these

` 2. Continuous variable is from qualities that can be

A. Measured C. Both A and B
A B C D
B. Counted D. none of these
3. Which of the following is NOT a continuous variable?
A B C D A. A person’s height each year
B. A person’s weight on each birthday
C. Number of Cars finished in a factory each day
D. The volume of water in a swimming pool
 4. Which of these is NOT a discrete variable?
A B C D A. The number of students absent in a class
B. The number of death per year attributed to lung cancer
C. The average amount of electricity consumed per household
per month
D. The number of people who drive through a red light each
hour during rush hour

5. The number of avocado produced by an avocado tree each

A B C D year is a continuous variable
A. True C. Maybe
B. False D. Cannot be determined

Well, what do you think about the pre-test? Do you think you did well?
Compare your answers with those in the Answer Key on the last part of this
module to find out.
If all your answers are correct, excellent! This shows that you already
know much about the topic. But you may still study this module to check what
you already know. Who knows, you might learn a few more new things as well.
If you got a low score, it’s ok. This module was made to help you
understand important concepts about random variable that you can apply in
your daily life. If you study this module carefully, you will learn the answers to
all the items in the test and a lot more! Are you ready? Let’s begin your journey.

Competency

1. Illustrate random variable (Discrete or Continuous).

(M 11/12 SP IIIa – 1)
2. Distinguish between a discrete and a continuous random variable.
(M11/12 SP IIIa – 2)

Objective

At the end of this lesson, you should be able to:

1. Illustrate random variable; and

2. Classify random variables as discrete or continuous.

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Procedure/Learning Experience

Activity

Complete the following table. The first one is done for you.
Experiment Number X Possible Value of X
Two cards are drawn Sum of the numbers 4, 5, 6, 7, 8, 9, 10,
from a deck. on the cards 11, 12, 13, 14, 15,
16, 17, 18, 19, 20
Roll a pair of dice Sum of the number of
dots on the top faces
Toss a pair of coin Number of tosses until
repeatedly the coin lands head
Height of individuals Height of your father

Analysis


This time, you need to reflect on the following questions because it will
help you to understand the appropriate way on illustrating and classifying a
random variable. Answer the following questions:
1. How do you find the activity/?

2. Where you able to complete the table? If yes, how? If no, why?

3. If a random variable takes on values on continuous scale it is continuous

random variable but if a random variable takes on outcomes that are
countable then it is discrete random variable. Now, Will you be able to
classify those experiment as discrete or continuous? If yes, how? If no,
why?

4. In your own words how will you differentiate between discrete and
continuous random variables?

Abstraction

A Random Variable is a numerical quantity that is derived from the

outcomes of random experiments.
There are two types of random variables, the discrete and continuous
random variables

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 Types of Random Variables

Discrete Continuous

A Discrete variable A Continuous variable

Is a numerical value associated with Has infinite numerical values
the desired outcomes. It is also either associated with any interval
a finite or infinite number of values on the number line system
but countable such as whole numbers without any gaps or breaks.
0,1,2,3.

For example: For example:

- The number of daily - Height
admissions in a hospital - Weight
- The number of male athletes - Skull Circumference

Table 1. Examples of Random Variables

Experiment Number X Possible Values of X
1. Flip a pair of Number of heads in 4 flips of a
0, 1, 2, 3, 4
coin coin
2. Flip a pair of coin Number of tosses until the coin
1, 2, 3, 4, …
repeatedly lands tails
3. Set of Integers Integers from 2 to 6 2, 3, 4, 5, 6
4. Set of real
Real numbers from 2 to 6 2<x<6
numbers

From the example in the table above, Examples 1, 2, and 3 are all discrete
while example 4 is continuous.

Application

This time, it’s your turn to shine. Answer the following as directed.
A. Classify as discrete or continuous random variable.
1. The speed of a bus
2. The number of voters favoring a candidate
3. The temperature in Quezon at noon time

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 4. The number of gold medals won by Quezon delegates in Regional
Sports Competition
5. The amount of paint used in repainting a building

B. Answer the following.

1. Ten children were asked to solve the Rubik’s cube. The time it took for
them to complete the puzzle is summarized in the table below.
Time (in min) Less than1 1-2 2–3 Greater
than 3
Number of 2 4 3 1
children
Classify what type of variable is shown.

2. Suppose that five cards are drawn from a deck, one at a time, without
replacement. Let X = the number of times a king is drawn from this
experiment. What are the possible values of X? Does the experiment
represent a discrete or a continuous random variable?

Reflection

Look back and reflect on what you have done, then answer the following
questions.

1. How do you know whether a random variable is continuous or discrete?

2. What is the difference between continuous and discrete random

variables?

5
 POST - TEST

You are now ready to take another chance to know where you are so far.
With your effort and determination I believe you can do it once again. Good
Luck.

1. Which of the following best describe variable that can be counted?

A B C D A. Discrete C. Nominal
B. Measured D. Qualitative

` 2. Which of the following best describe variable that can be measured?

A B C D A. Discrete C. Nominal
B. Continuous D. Qualitative

3. Which of the following is a NOT continuous variable?

A B C D A. A person’s weight each year
B. A person’s height on each birthday
C. Number of bicycle finished in a factory each day
D. The amount of water in a pale

4. Which of the following is NOT a discrete variable?

A. The number of students present in a class
A B C D
B. The number of death per year attributed to kidney failure
C. The average amount of water consumed per household
per month
D. The number of patients in a hospital each day

5. The number of coconut produced by a coconut tree each

A B C D month is a continuous variable
A. True C. Maybe
B. False D. Cannot be determined

6
 LESSON 2: Possible Values of Random Variable

Introduction
We first learned about the notion of variables in the introduction of
Algebra, and we know from our Algebra lessons that a variable is a placeholder
for real number values that can be assigned to it. Some examples of variables
includes X = number of heads or Y = number of cell phones or Z = running time
to movies.
If three coins are tossed, what numbers can be assigned for the
frequency of heads that will occur? If three cards are drawn from a deck, what
number can be assigned for the frequency of face cards that will occur? These
questions may be answered using random variables which you will learn in this
module.

How to Use this Module

This Self-Learning Kit (SLK) for Statistics and Probability will help you
understand the process on how to find the possible values of random variables.
This module has pre-test and post-test for you to track your progress as you go
on with the lesson. The pre-test will determine your prior knowledge of the
lesson while the post-test will measure your learning after you work with this
module. Read carefully the situations and examples given for you to understand
the lesson well.

PRE-TEST

Before studying this module, take this pre - test to find out how much you
already know about the topic covered. Shade the letter of the correct answer.
1. If two coins are tossed, which is NOT a possible value of the
A B C D random variable for the number of heads?
A. 0 B. 1 C. 2 D. 3
2. Which of the following is NOT a true statement?
A B C D A. The value of a random variable could be zero.
B. Random variables can only have one value.
C. The probability of all the value of a random variable could be zero.
D. The sum of all the probabilities in a probability distribution is
always equal to one.
3. You decided to conduct a survey of families with two children. You
A B C D are interested in counting the number of boys (out of 2 children) in
each family. Is this a random variable? If it is, what are the possible
values?

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 A. Yes, it is a random variable and its value can be 1 or 2.
B. Yes, it is a random variable and its value can be 0, 1 or 2.
C. Yes, it is a random variable and its value can be 2 or 4.
D. No, it is not a random variable since it is not random.

4. In a local community, a couples were asked the questions “Are

A B C D you satisfied with the work of the current president?” If the
husband and the wife both said “yes”, the response is written as
YY. If the husband said yes and the wife said “no”, the response
is YN. Let X = the number of “yes” responses. , what are the
possible values of the random variables?
A. 0, 1, 2 B. 1, 2, 3 C. 2, 3, 4 D. 1, 1, 2
5. A quantity resulting from an experiment by chance, can assume a
A B C D different values is called
A. Random Experiment C. Random Variable
B. Random Sample D. Random process

How did you find the pre-test? Have you got the correct answers? If yes,
Very Good! But, if you failed to get it right don’t be hesitant to learn new
concepts because it only indicates that you need to ponder yourself by exploring
this module. By that, you will acquire the proper way on how to deal with those
situations. The next time you encounter those scenarios, things would be easy
for you.
Be focused on the details that will be presented and will be discussed in
this module in order for you to take into the proper procedure in answering those
problems.
Let us now discuss this Lesson.

Competency

1. Find the possible values of a random variable. (M11SP IIIa – 3)

Objective

At the end of this lesson, you should be able to:

1. find the possible values of a random variables.

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Procedure/Learning Experience
Activity

Suppose three cell phones are tested at random. We want to find out
the number of defective cell phones. Thus, to each outcome in the sample
space we shall assign a value. These are 0, 1, 2, or 3. If there is no defective
cell phone, we assign the number 0; if there is 1 defective cell phones, we
assign the number 1; if there are two defective cell phones, we assign the
number 2; and 3, if there are three defective cell phones. The number of
defective cell phones is a random variable. The possible values of this
random variable are 0, 1, 2, and 3.

cp1 cp2 cp3

Read and analyze the given situation below.

Illustration:
Let D represent the defective cell phone and N represents the non –
defective cell phone. If we let X be the random variable representing the number
of defective cell phones, show the values of the random variable X? Complete
the table below to show the values of the random variable.
Value of the Random Variable X
Possible Outcomes
(number of defective cell phones)

9
 Analysis

This time, you need to reflect on the following questions because it will
help you to understand the appropriate way on finding the possible values of a
random variable. Answer the following questions:
1. How do you find the activity?
2. Were you able to complete the table? If yes, how? If no, why?
3. Will you be able to find the values of the random variable? If
yes, how? If no, why?
4. In your own words how will you describe a random variable?
How do you find the possible values of a random variable?

Abstraction

A Random Variable is a numerical quantity that is derived from the

outcomes of random experiments.
The random variable in the activity above is a discrete random variable
because the set of possible outcomes is countable. The possible values of
random variable X are 0, 1, 2, and 3.
Example 1. Suppose three coins are tossed. Let Y be the random variable
representing the number of tails that occur. Find the values of the random
variable Y.
Steps Solution
1. Determine the The sample space for this experiment is:
sample space. Let S = {TTT, TTH, THT, HTT,
H represent head HHT, HTH, THH, HHH}
and T represent tail.
2. Count the number of Possible Value of the Random
tails in each outcome Outcomes variable Y (Number of
in the sample space tails)
and assign this TTT 3
number to this TTH 2
outcome. THT 2
HTT 2
HHT 1
HTH 1
THH 1
HHH 0
So, the possible values of the random variable Y are 0, 1, 2, and 3.

10
Example 2.
Two balls are drawn in succession without replacement from a box containing
5 red balls and 6 blue balls. Let Z be the random variable representing the
number of blue balls. Find the values of the random variable Z.
Steps Solution
1. Determine the The sample space for this
sample space. Let experiment is:
B represent the blue S = {RR, RB, BR, BB}
ball and R represent
the red ball.
2. Count the number of Possible Value of the
blue balls in each Outcomes Random
outcome in the sample variable Z
space and assign this (Number of
number to this blue balls)
outcome. RR 0
RB 1
BR 1
BB 2
So, the possible values of the random variable Z are 0, 1 and 2.

Application

This time, it’s your turn to shine. Answer the problem below.
The households of a local community were surveyed about the number
of occupants who are working. It was found out that 25 households have one
occupant working, 18 have two occupants working, 12 have three occupants
working, and 5 have four occupants working. Let X be the number of occupants
working from a randomly selected household. What are the possible values for
the random variable?

Reflection

This time, it’s your turn to shine. Answer the following as directed.

1. How do you find the values of a random variables?

2. How is this variable, as described in Algebra, similar to a random
variable? How do they differ?

11
 POST - TEST

You are now ready to take another chance to know where you are so far. With
your effort and determination I believe you can do it once again. Good Luck.

1. If two coins are tossed, which is not a possible value of the

A B C D random variable for the number of tails?
A. 0 B. 1 C. 2 D. 3

2. Which of the following is a true statement?

A B C D A. The value of a random variable could not be zero.
B. Random variables can only have one value.
C. The probability of all the value of a random variable could
be Zero.
D. The sum of all the probabilities in a probability distribution is
not equal to one.

3. You decide to conduct a survey of families with two children. You

A B C D are interested in counting the number of girls (out of 2 children)
in each family. Is this a random variable and if it is, what are the
possible values?
A. Yes, it is a random variable and its value can be 1 or 2.
B. Yes, it is a random variable and its value can be 0, 1 or 2.
C. Yes, it is a random variable and its value can be 2 or 4.
D. No, it is not a random variable since it is not random.

4. In a local community, a couples were asked the questions “Are

A B C D you satisfied with the work of the current president?” If the
husband and the wife both said “yes”, the response is written as
YY. If the husband said yes and the wife said “no”, the response
is YN. Let X = the number of “yes” responses. , what are the
possible values of the random variables?
A. 0, 1, 2 B. 1, 2, 3 C. 2, 3, 4 D. 1, 1, 2
5. A set of numerical values assigned to a sample space is called
A B C D A. Random Experiment C. Random Variable
B. Random Sample D. Random process

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 LESSON 3: Constructing Probability Distribution
Introduction
You have learned that the likelihood of winning in a lotto draw, number of
winnings in a gamble, number of heads that comes out in a toss of a coin and
other game of chance can be estimated using probability. But do you know that
it is not only for game of chance? We also use this in business, economics, and
engineering and other real-life situations.
In this self -learning module, the concept of probability distribution for a
discrete random variable will be introduced. Some decisions are made by
assigning probabilities to all possible outcomes pertaining to the situation. When
we draw conclusion from data, we usually state them in terms of probabilities.

How to Use this Module

This Self-Learning Kit module is designed to help the students in

understanding the concepts of probability distribution and its corresponding
histogram. This will serve as your guide to better understand the topics in
Statistics and Probability. A pre-test is given in this module before the self-
learning kit proper to determine a student’s baseline knowledge or level of
preparedness for their course of study. Enjoy learning in this module as you go
over with discussion and examples if you have not yet mastered a concept.

PRE-TEST
Before starting with the lesson of this module, answer the following
questions first. This will determine what you already know about the topic.
Direction: Shade the circle that corresponds to the letter of your answer.

1. What is the sum of the probabilities of all values of the

A B C D random variable?
A. ∑(𝑃 (𝑋 ))= 0 C. ∑(𝑃(𝑋 )) = 1
B. ∑(𝑃 (𝑋 )) = 1/10 D. ∑(𝑃(𝑋 )) = 10

2.If two balls are drawn in succession without replacement from

an urn containing 5 red balls and 6 blue balls. If the value of the
A B C D
random variable represents the number of blue balls. How many
outcomes are possible ?
A.2 B. 4 C. 6 D. 8
3.Which of the following cannot be the value of probability of the
random variable ?
A B C D
A. 1.01 B. 0 C. 1/4 D. 1/2

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 4.Which of the following can serve as the values of a probability
distribution ?
A B C D A. P(1) = 0.42, P2) = 0.31, P(3)= 0.37
C. P(1) = 9/14, P2) = 4/14, P(3)= 1/14
B. P(1) = 0.08, P2) = 0.12, P(3)= 1.03
D. P(1) = 10/33, P2) = 12/33, P(3)= 10/33

𝑥
5. If P(X)= , what are the possible values of X for it to be a
6
A B C D probability distribution?
A.0,2,3 B.1,2,3 C. 2,3,4 D.1,1,2

Well, what can you say about the pre-test ? Do you think you did well ?
To find out if your answer is correct, compare your answers on the Answer Key
(This can be found at the end of the chapter).

Competency

1. Illustrates a probability distribution for a discrete random variable and

its properties. (M11/12SP-IIIa-4)
2. Constructs the probability mass function of a discrete random
variable and its corresponding histogram. (M11/12SP-IIIa-5)
3. Computes probabilities corresponding to a given random variable.
(M11/12SP-IIIa-6)

Objective

At the end of this lesson, you should be able to:

1. find the value of the random variable that represents in the given
problem.
2. construct a probability distribution and its corresponding histogram for
the random variables described in the situation.
3. determine whether the distribution represents a probability distribution.

Procedure/Learning Experience

Activity

Number of Defective Computer

In a computer laboratory, the teacher wants to find out if there is a
defective computer. Supposed three computers are tested at random, she asks
one of her CSS students to list all the possible outcomes, such that D

14
represents the defective computer and N represents the non-defective
computer. Let X be the random variable for the number of defective computers.
Find the value of the random variable X.

a. List the sample space in the given experiment. Let D represent the defective
computer and N represent the non-defective computer. Count the number of
defective computers in each outcome in the sample space and assign this
number to this outcome. For instance , if you list NND the number of
defective computer is 1.
Value of the Random Variable X
Possible Outcomes
(number of defective computers)

b. Assign probability values P(X) to each value of the random variable

Number of Defective Computers X Probability P(X)

c. Construct a histogram for a probability distribution. Remember that a

histogram is a bar graph. Plot the values of the random variable along the
horizontal axis, then plot the probabilities along the vertical axis.

15
 Analysis


This time, you need to reflect on the following questions. Answer the
following questions:

1. How did you find the activity?

2. How many outcomes did you obtained?
3. What are the values of the random variable?
4. How will you find the probability to each value of a random variable?
5. In the preceding probability distributions, what do you notice about the
probability of each value of the random variable?
6. What is the sum of the probabilities of all values of the random variable?

Abstraction

A random variable is a set whose elements are the numbers assigned to

the outcomes of an experiment. It is usually denoted by uppercase letters such
as X, whose elements are denoted by lower case letters x1, x2, x3 and so on.

Probability distribution of a discrete random variable specifies the probability

of each possible value of the random variable. The distribution functions of
discrete random variables are concentrated as a mass for a particular value,
and generally known as Probability Mass Function.

Properties of discrete probability distribution

1. The probability of each value of the random variable must be between
or equal to 0 and 1. In symbol 0 < P(X) < 1.

2. The sum of all the probabilities of all values of the random variable must
be equal to 1. In symbol, we write it as 𝚺P(X) = 1

Probability Histogram

We can represent a probability distribution graphically by constructing a

type of bar graph called a probability histogram. This is constructed by
displaying the possible distinct values of the random variable along a
horizontal axis. Above each value x of the random variable, we draw vertical
bar having height equal to the probability P(x).

Ex. 1. Number of Green Balls

Write the probability distribution of a random variable Y representing the
number of green balls when 2 balls are drawn in succession without
replacement from a jar containing 4 red and 5 green balls. Construct a
histogram for this probability distribution.

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 Steps Solution
a.Determine the sample space. Let R The sample space for this
represent the red ball and G represent experiment is:
the green ball. S= { RR, RG, GR, GG}
b.Count the number of green balls in Possible Value of the
each outcome in the sample space and Outcomes Random Variable Y
assign this number to this outcome. (No. Of Green
Balls)
RR 0
RG 1
GR 1
GG 2
c.Assign probability values P(Y) to each Number of Probability P(Y)
value of the random variable. Green Balls Y
-There are 4 possible outcomes, if no
green ball occurs once, the probability
that we shall assign to the random 0 1/4
variable 0 is ¼
-If 1 green ball occurs two times, the
probability that we shall assign to the 1 2/4 or ½
random variable 1 is 2/4 or ½.
-If 2 green balls occur once, the
probability that we shall assign to the 2 ¼
random variable 1 is ¼.

Histogram
Construct a histogram for this probability distribution. A histogram is a bar
graph. To construct a histogram for a probability distribution, follow these steps.
Plot the values of the random variable along the horizontal axis.

a) In plotting the probabilities along the vertical axis, you can change
fractions to decimals (ex. ¼=0.25 and ½= 0.5)

0.6

0.5

0.4
P(Y)

0.3

0.2

0.1

0
0 1 2
No. of Green Balls (Y)

17
Ex. 2.Write the probability mass function of the random variable X defined by
the outcomes of rolling a fair die and construct its corresponding histogram.

a)Since a die is fair, each of the 6 outcomes has a probability 1/6 or

approxiamtely 0.17, thus, the probability mass function is:
X 1 2 3 4 5 6
P(X) 1/6 1/6 1/6 1/6 1/6 1/6

b) Histogram

0.18
0.16
0.14
0.12
0.10
P(X)

0.08
0.06
0.04
0.02
0.00
1 2 3 4 5 6

Ex. 3.Let X be a random variable giving the number of girls in a randomly

selected three-child family. Assuming that boys and girls are equally likely ,
construct the probability distribution of X and its corresponding histogram.

a)
Possible Outcomes Value of the Random Variable X
(No. of Girls)
BBB 0
BBG 1
BGB 1
GBB 1
BGG 2
GBG 2
GGB 2
GGG 3

18
b)
No. of Girls 0 1 2 3
Probability P(X) 1/8 or 0.125 3/8 or 0.375 3/8 or 0.375 1/8 or 0.125
ΣP(X)= 1/8 +3/8 + 3/8 + 1/8 = 8/8 =1
c)Histogram
0.4
0.35
0.3
0.25
P(X)

0.2
0.15
0.1
0.05
0
0 1 2 3
No. of Girls (X)

4. X 1 5 7 8 9
P(X) 1/3 1/3 1/3 1/3 1/3
Σ P(X)= 1/3 + 1/3 +1/3 +1/3 +1/3=5/3
This is not a probability distribution because ΣP(X) ≠ 1

X 1 3 5 7
5. P(X) 0.35 0.25 0.28 0.12
Σ P(X)= 0.35 + 0.25 + 0.28 + 0.12 =1
This is a probability distribution because ΣP(X) = 1

Application
Use the procedure that you have learned to solve the following problems
involving probability distribution of a discrete random variable.

A. Construct the probability distribution for the random variables described in

each of the following situations .Draw the corresponding histogram for each
probability distribution.

1. In a National Achievement Test, suppose three test booklets are tested at

random. Let D represent the defective test booklet and let N represent the non-
defective test booklet. Let X be the random variable representing the number
of non-defective test booklets.

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2. An experiment consists of asking three Grade 10 students at random if they
prefer to choose Academic track or TVL track in the senior high school. Use A
for Academic and T for TVL. Let Y represent the random variable representing
the number of TVL track responses.
3. Suppose that a coin is to be tossed four times, and let X represent the
number of tails that occur.
4.Using the sample space for rolling two dice , construct a probability
distribution for the random variable X representing the sum of the numbers
that appear.

B. Determine whether the distribution represents a probability distribution.

Explain your answer.
1. X 1 5 7 8
P(X) 1/4 1/8 1/4 1/8

2. X 0 2 3 4 6
P(X) 1/6 1/6 1/6 1/3 1/6

3. X 1 3 5 7
P(X) 0.35 0.25 0.22 0.12

4. P(1)= 0.42, P(2)= 0.31, P(3)= 0.37

5. P(1)= 10/33, P(2)= 1/3, P(3)= 12/33

Have you finished answering? Compare your answer to the Answer Key
(This can be found at the end of the chapter).

Reflection
Look back and reflect on what you have done, then answer the following
questions.
1. Why should the sum of the probabilities in a probability distribution
always equal to 1?

2. What is the shape of most probability distributions? Why do you think so ?

20
 POST - TEST

You are now ready to take another chance to know where you are so far. With
your effort and determination I believe you can do it once again. Good Luck.
Direction: Shade the circle that corresponds to the letter of your answer.

1.What is the sum of the probabilities of all values of the random

variable?
A B C D
A P(X) = 1 C. P(X) = 0
B P(X) = 1/10 D. P(X) = 10

2.If two balls are drawn in succession without replacement from

A B C D an urn containing 3 red balls and 5 blue balls. If the value of the
random variable represents the number of red balls. How many
outcomes are possible ?
A.8 B. 6 C. 4 D. 3

3.Which of the following cannot be the value of probability of the

random variable ?
A B C D
A. 1.01 B. 0 C. 1/4 D. ½

4.Which of the following can serve as the values of a probability

A B C D distribution ?
A. P(1) = 0.42, P2) = 0.31, P(3)= 0.37
C. P(1) = 9/14, P2) = 5/14, P(3)= 1/14
B. P(1) = 0.08, P2) = 0.12, P(3)= 0.83
D. P(1) = 10/33, P2) = 1/3, P(3)= 12/33

𝑋
5.If P(X)= , what are the possible values of X for it to be a
8
A B C D probability distribution?
A.0,2,3,4 B.0,1,2,3 C. 1,3,4 D.1,2,3

21
 LESSON 4: Illustrating and Calculating Mean and Variance of
Discrete Random Variable
Introduction

If you took an examination, do you sometimes think of where would be

your score lie? Would it be below or above the average score? Afterwards, you
would like also to know how far you are from the average score. Finally, you
would ask yourself what is the meaning of those locations from the center or
mean of the probability distribution? If your interest caught by these questions,
this learning module is design for you.
In this module, you will understand the process on how to illustrate the
mean and variance of a discrete random variable. Similarly, calculating the
mean and the variance of a discrete random variable will be discussed. You
may find this module as piece of good fortune in acquiring brand new learning.

How to Use this Module

This Self-Learning Kit (SLK) for Statistics and Probability will enable the
learner to understand the concept on how mean and variance of discrete
random variable are illustrated. Moreover, process on calculating the mean and
variance of discrete random variable will be presented. Pre-Test and Post- Test
are prepared for you to be able to monitor your personal development while you
go on course of the study. The Pre-test will display how much you already know
about the lesson. On the other hand, the post- test will estimate or assess the
extent of learning after you deal with this module.

PRE-TEST

Before studying this module, take this pre- test to find out what you
already know about the topics covered. Please shade the letter of the correct
answer.
1. The appropriate formula in finding the mean of discrete
A B C D random variable is
A. E(x) = μx = ∑ x ∙ p (x) C. E(x) = μx = ∑ x − p (x)
B. E(x) = μx = ∑ x + p (x) D. E(x) = μx = ∑ x ∙ p (x)2

2. What formula is used to find the variance of discrete random

variable?
A B C D
A. 𝜎𝑥2 = ∑(𝑥 + 𝜇)2 ∙ 𝑝(𝑥); for all possible values of x
B. 𝜎𝑥2 = ∑(𝑥 − 𝜇)2 ∙ 𝑝(𝑥); for all possible values of x

22
 C. 𝜎𝑥2 = ∑ 𝑥 ∙ 𝑝(𝑥); for all possible values of x
D. 𝜎𝑥2 = ∑(𝑃(𝑥) + 𝜇)2 ∙ 𝑥 ; for all possible values of x

3. Which statement is true about the standard deviation of a

discrete random variable?
A B C D
A. It deals about the average or center of location of the
probability distribution.
B. It is obtained by multiplying the x values and its corresponding
probability.
C. It is the square root of the variance of discrete random
variable.
D. It is the summation of the product of the square of the
difference of x and its probability.

4. In a recent Barangay Basketball League, each player went to

free throws 2 times. The number of free throws made by each
A B C D
player is described by the following probability
distribution.
Number of free throws,
Probability,P(X)
x
0 0.20
1 0.45
2 0.35
What is the mean of the probability distribution?
A. 1.00 B. 1.15 C. 2.00 D. 2.25

5. The number of qualified voters living in household on a

randomly selected subdivision block is described by the
A B C D
following probability distribution.

Number of qualified voter/s, x 1 2 3 4

Probability, P(X) 0.25 0.50 0.15 0.10

What is the variance and standard deviation respectively of the probability

distribution?
A. 0.99 and 0.50 C.0.80 and 0.79
B. 0.89 and 0.62 D. 0.79 and 0.89

23
 How did you find the pre-test? Have you got the correct answers? If
yes, Very Good! But, if you failed to get it right don’t be hesitant to learn new
concepts because it only indicates that you need to ponder yourself by
exploring this module. By that, you will acquire the proper way on how to
deal with those situations. The next time you encounter those scenarios,
things would be easy for you.
Be focused on the details that will be presented and will be discussed
in this module in order for you to take into the proper procedure in answering
those problems.
Let us now discuss the Lesson 4.

Competency

1. illustrates the mean and variance of a discrete Random

variable (M11/12SP-IIIb-1)
2. calculates the mean and the variance of a discrete random variable
(M11/12SP-IIIb-2)

Objective

At the end of this lesson, you should be able to:

1. learn concepts of mean and variance of discrete random variable

2. solve for the mean and variance of discrete random variable
3. interpret the values obtained.

Procedure/Learning Experience

Activity

Illustrating and Calculating the Mean and Variance

of Discrete Random Variable
Read and analyze the situation given below:
Mr. Cresente Umali, a Mathematics teacher, regularly gives a
formative assessment composed 5 multiple choice items. After the
assessment, he used to check the probability distribution of the
correct responses and the data is presented below:

24
 Test Item Probability ,

𝑋 𝑝(𝑋)
0 0.03
1 0.05
2 0.12
3 0.30
4 0.28
5 0.22

Based on the data above, observe, analyze and answer the following
questions:
1. Is the probability of x lies between 0 and 1?_____________________

2. What is the sum of all probabilities of x?_______________________

3. Is there a negative probability? Is it possible to have a negative

probability?________________________________________________
4. What is the average or mean of the probabilities of discrete random
variable?__________________________________________________
5. What are the variance and the standard deviation of the probability
distribution from the data above?_______________________________

Analysis

This time, you need to reflect on the following questions because it will
help you to understand the appropriate way on illustrating and calculating the
mean, variance and standard deviation of a discrete random variable. Answer
the following questions:
1. How did you find the given activity?
2. Were you able to get the correct answer for each question? If yes, Very
Good! If not, which question/s you find difficult?
3. What mathematical skills help you to answer all 5 questions?
4. Do you think the concepts that you will acquire in this module would be
helpful to solve real-life problems?

25
 Abstraction

The Expected or mean value of a discrete random variable x, denoted

by x, is computed by first multiplying each possible x value by the probability of
observing that value and then adding the resulting quantities. Symbolically,
𝐸 (𝑥) = ∑ 𝑥𝑃(𝑥).
Using the given data, multiply each x value by its probability and add the
results to get 𝜇x.

Test Item, Probability ,

𝒙 ∙ 𝑷(𝑿)
𝒙 𝑷(𝑿)
0 0.03 0
1 0.05 0.05
2 0.12 0.24
3 0.30 0.90
4 0.28 1.12
5 0.22 1.10

𝑬(𝒙) = 𝝁𝒙 = ∑ 𝒙 ∙ 𝑷(𝑿) = 𝟑. 𝟒𝟏
So, it indicates that the expected value or mean of the random variable
is 3.41.
For question 5, you will need to understand the process on computing the
variance and the standard deviation of the discrete random variable. In order to
compute those, always remember this;

The Variance of a Discrete Random Variable X, denoted by 𝝈𝟐𝒙 is

computed by first subtracting the mean from each possible x value to obtain the
deviations, then squaring each deviation and multiplying the result by the
probability of the corresponding x value, and then finally adding these
quantities. In symbol,

26
 The Standard Deviation of x, denoted by 𝝈𝒙 , is the square root of the

Variance. In symbol,
From the data generated.

Test Probability 𝒙 𝒙 (𝒙 (𝒙 − 𝝁)𝟐

Item, 𝒙 𝑷(𝑿) ∙ 𝑷(𝑿) − 𝝁 − 𝝁)𝟐 ∙ 𝑷(𝑿)

0 0.03 0 -3.41 11.6281 0.3488

1 0.05 0.05 -2.41 5.8081 0.2904
2 0.12 0.24 -1.41 1.9881 0.2386
3 0.30 0.90 -0.41 0.1681 0.0504
4 0.28 1.12 0.59 0.3481 0.0975
5 0.22 1.10 1.59 2.5281 0.5562

𝝁𝒙 = ∑ 𝒙 ∙ 𝑷(𝑿) = 𝟑. 𝟒𝟏 ∑(𝒙 − 𝝁)𝟐 ∙ 𝑷(𝑿) = 𝟏. 𝟓𝟖𝟏𝟗

The Variance is 1.5819, and

The Standard Deviation is √𝟏. 𝟓𝟖𝟏𝟗 , and it is equivalent to 𝝈 = 1.26
Therefore, the correct answers for question 5 are 1.5819 and 1.26
respectively.
For uniformity of the answers, expected value or mean and standard
deviation are both expressed into two decimal places while variance is up to
four decimal places to lessen rounding error.
Let us take this example,
Suppose that a coin is tossed twice so that the sample space is S = {𝐻𝐻,
𝑇𝐻, 𝐻𝑇, 𝑇𝑇}. Let X represents the “number of heads that can come up”, Based
on the prepared discrete probability distributions of the random variable X.
Outcome or Sample Point HH HT TH TT
X 2 1 1 0
Illustrate and calculate the mean, variance and standard deviation.

27
 Applying the concepts from the activity given above, let us complete the
table below.

𝒙 𝑷(𝑿) 𝒙 ∙ 𝑷(𝑿) 𝒙 − 𝝁 (𝒙 − 𝝁)𝟐 (𝒙 − 𝝁)𝟐 ∙ 𝑷(𝑿)

0 ¼ or 0.25 0 -1 1 0.25
1 ½ or 0.5 0.5 0 0 0
2 ¼ or 0.25 0.5 1 1 0.25
𝝁𝒙 = ∑ 𝒙 ∙ 𝑷(𝑿) = 𝟏 ∑(𝒙 − 𝝁)𝟐 ∙ 𝑷(𝑿) = 𝟎. 𝟓𝟎

The expected value or mean is 1.

The Variance is 0.50, and
The Standard Deviation is √𝟎. 𝟓0, and it is equivalent to 𝝈 = 0.71.

We have seen that the Expected value E(x) is just the average or mean
(µ) of random variable x. It’s sometimes called a “weighted average” because
more frequent values of X are weighted more highly in the average. It’s also
how we expect X to behave on-average over the long run. The mean of a
random variable X is a measure of the central location of the distribution of X. If
we are summarizing features of the distribution of X, it is clear that location is
not the only relevant feature. The second most vital feature is the spread of the
distribution.

If values of X is closer to its mean, μX are very likely and values further
away from μX have very small probability, then the distribution of X will be closely
concentrated around μX. In this case, the spread of the distribution of X is small.
On the other hand, if values of X take some distance from its mean μX are likely,
the spread of the distribution of X will be large.

These ideas head to the most significant measure of spread, the

variance, and a closely related measure, the standard deviation.

You, as a student have met the concepts of variance and standard

deviation when summarizing data. These were the sample variance and the

28
sample standard deviation. The difference here is that we are referring to
properties of the distribution of a discrete random variable.

Again, the variance of a discrete random variable X is defined by

where the sum is taken over all values of x for which P(x) > 0 but less than 1.
So, the variance of X is the weighted average of the squared deviations from
the mean μ, where the weights are given by the probability function P(x) of X.

The standard deviation of X is defined to be the square root of the

variance of X. That is,

Because of this definition, the variance of X is often denoted by σ2x.

In another way around, the standard deviation is the more tangible of the
two measures, since it is in the same units as X. For example, if X is a random
variable measuring lengths in ft, then the standard deviation is in feet (ft), while
the variance is in square ft (ft2).

Unlike the mean, there is no simple direct interpretation of the variance

or standard deviation. The variance is parallel to the moment of inertia in
physics, but that is not necessarily widely understood by students. What is
important to understand is that, in relative terms:
 a small standard deviation (or variance) means that the distribution of the
random variable is concentrated narrowly around the mean
 a large standard deviation (or variance) means that the distribution is
spread out, with some chance of observing values at some distance from
the mean.
Remember that the variance cannot be negative, because it is an average
of squared quantities. This is appropriate, as a negative spread for a distribution
does not make sense. Hence, variance is greater than 0 and standard deviation
also greater than 0 always.

29
 Application

This time, it’s your turn to shine. Answer the following problems.
1. The number of shoes sold per day at a retail store is shown in the table
below. Find the mean, variance, and standard deviation of this
distribution,

X 19 20 21 22 23

P(X) 0.1 0.2 0.4 0.2 0.1

2. Suppose that a coin is to be tossed four times, and let X represents “the
number of TAILS that can come up”. Find the mean, variance, and
standard deviation of this distribution.
3. The number of patients seen in the Emergency Room in any given hour
is a random variable represented by x. The probability distribution for x
is:
X 10 11 12 13 14

P(X) 0.4 0.2 0.2 0.1 0.1

Compute for the mean, variance and standard deviation.

To verify whether you able to get the correct answer you may refer on
Answer Key provided.

Reflection

Life is not measured by the number of breaths we take, but by the

moments that take our breath away and by the chances we bravely face.

Please write your own thoughts here.

30
 POST - TEST

In order to determine your learning in this module, answer the following.

Please shade the letter of the correct answer.

1. Let X be a random variable defining number of students getting

A B C D 95 above grade. Find the expected value of X from the given
table.

X 0 1 2 3
P(X) 0.2 0.1 0.4 0.3

A. 1.3 B. 1.8 C. 1.9 D. 2.3

2. A Grade 11 – HUMMS researcher surveyed the households in

A B C D Brgy Quipot, Tiaong Quezon. The random variable X represents
the number of college graduates in the households. The
probability distribution of X is shown below.

X 0 1 2
P(X) 0.25 0.5 0.25

Find the values of variance and standard deviation.

A. 0.3 and 0.51 respectively
B. 0.4 and 0.61 respectively
C. 0.5 and 0.71 respectively
D. 0.6 and 0.81 respectively

3. Which of the following statements is TRUE about the

A B C D interpretation of the values of variance and standard deviation?

A. A small value of variance or standard deviation indicates

that the distribution of the discrete random variable is closer
about the mean.

31
 B. A large value of variance or standard deviation indicates
that the distribution of the discrete random variable is closer
about the mean.
C. A small value of variance or standard deviation indicates
that the distribution of the discrete random variable takes
some distance from the mean.
D. All of the above.

4. In 50 items test, Miss Santos, a mathematics teacher claimed

A B C D that most of the students’ scores lie closer to 40. In this situation,
score of 40 is considered as,
A. Variance
B. Standard Deviation
C. Expected Value or Mean
D. Median

5. Which of the following statement describes variance of a

A B C D discrete random variable?
A. It is a small value of variance or standard deviation
indicates that the distribution of the discrete random
variable is closer about the mean.
B. It is the product of mean and the square of the
probability distribution of a discrete random variables.
C. It is obtained by getting the summation 0f the product
of the square of the difference between the value of X
and the expected value times its corresponding
probability
D. All of the above

32
 LESSON 5: Interpreting the Mean and Standard Deviation of
Discrete Random Variable
Introduction
Are you interested in buying lotto tickets? How about making a bet in a
roulette wheel or taking a chance in raffle tickets? Do you want to know how
much gain will you have if you will win in games of chance or how much money
will be wasted if you lost on a bet? Are you planning to invest money in a life
insurance company? If you had thought of the following questions this module
is for you.
In this module, you will learn how to compute the probability or the chance
of winning and losing. You will apply the formula for the expected mean to solve
real life problems involving mean and variance of probability distributions. Good
luck and happy learning.

How to Use this Module

This Self-Learning Kit (SLK) for Statistics and Probability will help you
understand the application of mean and variance of probability distribution. This
module has pre-test and post-test for you to track your progress as you go on with the
lesson. The pre-test will determine your prior knowledge of the lesson while the post-
test will measure your learning after you work with this module. Read carefully the
situations and examples given for you to understand the lesson well.

PRE-TEST

Before studying this module, take this simple test to determine what you already
know about the topic covered. Please shade the letter of the correct answer.

1. You buy one ₱500.00 raffle ticket for a prize of new car (Toyota
Wigo) valued at ₱675, 000.00. Two thousand tickets are sold. If X
A B C D
denotes the net gain from the purchase of a randomly selected
ticket, which of the following tables of values shows the
probability distribution of X?
A. x 675,000 -500 C.
x 674,500 -500
P(x) 1 1999 P(x) 1 1999
2000 2000 2000 2000

x 674,500 500
x 675,000 500
B. D. P(x) 1 1999
P(x) 1 1999
2000 2000
2000 2000

33
 2. What is the mean or the expected value of item number 1?
A B C D(Refer to problem number 1)
A. - 162.5 B. -162.25 C. 162.25 D. 162.5

3. One thousand tickets are sold for ₱10.00 each. One ticket will
A B C Dwin ₱2,000.00, two tickets will win ₱1,000.00 each and four
tickets will win ₱500.00 each. What is the probability of winning
any amount in the purchase of one ticket?
1 2 5 7
A. B. C. D.
1000 1000 1000 1000

4. A roulette wheel in a fiesta carnival has the numbers 1 through

A B C D50. If you bet ₱5.00, you will have a chance to win a kitchen
utensil worth ₱200.00. How much the organizer will earn if 100
games will be played?
A. ₱2,000.00 B. ₱3,000.00 C. ₱4,000.00 D. ₱5,000.00
5. A life insurance company will sell a ₱500,000.00 five-year term
A B C Dlife insurance policy exclusive for police enforcers for a premium
of ₱1,000.00. Find the expected value to the company of a single
policy if a police enforcer has a 99.95% chance of surviving five
years?
A. ₱550.00 B. ₱650.00 C. ₱750.00 D. ₱850.00
Well, what do you think about the pre-test? Do you think you did well?
Compare your answers with those in the Answer Key on the last part of this
module to find out.
If all your answers are correct, excellent! This shows that you already
know much about the topic. But you may still study this module to check what
you already know. Who knows, you might learn a few more new things as well.
If you got a low score, it’s ok. This module was made to help you
understand important concepts about mean or expected value of discrete
random variable that you can apply in your daily life. If you study this module
carefully, you will learn the answers to all the items in the test and a lot more!
Are you ready? Let’s begin your journey.

Competency

1. Interprets the mean and variance of a discrete random variable.

(M11/12SP-IIIb-3)
2. Solves problems involving mean and variance of probability
distributions. (M11/12SP-IIIb-4)

34
 Objective

At the end of this module, the learner should be able to:

1. understand the concept of mean or expected value of discrete random

variable.
2. solve real life problems involving mean of probability distributions of a
discrete random variable.
3. interpret the mean of a discrete random variable in relation to real life
problems.

Procedure/Learning Experience

Activity

GAME OF CHANCE

Read the conversation below and answer the questions that follow.

Our television set is no Oh no! I do understand but if

Hey Romulo I longer functional and I you want to take a chance I
Ok, so
have a problem. need to buy a new have here 5 raffle tickets
what’s your
one. But the problem which cost ₱100.00 each. If
problem my
is I don’t have enough you will be lucky enough,
friend?
budget for that. you’ll get a 32-inch LED
Television worth ₱15,000.00.

35
That’s a good deal and the
prize is so exciting! But I need
to check my budget before
buying a ticket. Thanks for
It will be 10 days from
informing me. I’ll just call you
now. You still have time to
when I am ready to buy. By Thank you
decide, just call me if you You’re welcome Cardo!
the way, when is the raffle Romulo!
already have your
date?
decision.

Questions:
1. If you are Cardo, would you buy a raffle ticket? Why?
______________________________________________________________
_____________________________________________________________.
2. How would you describe Romulo as a friend?
______________________________________________________________
______________________________________________________________
3. If Cardo decided to buy one ticket, what is the probability that he would win
the prize if 500 tickets were sold? ________ What is the probability that Cardo
will lose the bet?_________
4. How much money will Cardo gain if he wins the prize? _______. How much
money will be wasted if he will not win the prize? ____________________
5. If you were Cardo, will you buy a ticket? __________________________.

Analysis


This time, you need to reflect on the following questions because it will
help you to understand the concept of the mean and variance of a discrete
random variable. Your honest answer would be a big help for the success of
your journey on this module.
1. How do you find the activity?
2. Were you able to answer all five questions? If yes, what helped you to answer
each question? If no, why were you not able to answer those questions?
3. Have you experienced a situation where you need to decide to take a
chance? If yes, reflect on the factors which affect your decision.
4. What mathematical concepts or skills will help Cardo make his decision? How
important these concepts/skills for Cardo to decide and choose the best option?
5. Do games of chance really help individuals with financial problems? Explain.

36
 Abstraction

Mean or Expected Value and Standard Deviation of a Discrete Random

Variable.

Expected value is exactly what you might think, it means intuitively: the return
you can expect for some kind of action. It informs about what to expect in an
experiment "in the long run", after many trials.
In the study of probability distribution the mean of possible values of a discrete
random variable, given by their respective probabilities, is known as the
expected value, usually represented by 𝐸 (𝑥) or 𝜇𝑋 . To compute for the mean of
a discrete random variable, we use the formula
𝐸 (𝑥) = 𝜇𝑥 = ∑[𝑥𝑖 ∙ P(𝑥𝑖 )]
where 𝑥𝑖 is the value of the random variable for outcome 𝑖, 𝜇𝑥 is the mean of
random variable X, and P(𝑥𝑖 )is the probability that the random variable will be
outcome 𝑖.

EXAMPLE Senior citizens of a particular barangay organize a Christmas

1 raffle bonanza. One thousand raffle tickets are sold for ₱50.00
each. Each one has an equal chance of winning. The first prize is a 32-inch LED
TV worth ₱10,000.00, the second prize is an electric oven worth ₱5,000.00 and
the third prize is a grocery pack worth ₱2,500.00. Let X denotes the net gain
from the purchase of one ticket.
a. Construct the probability distribution of X.
b. Find the probability of winning any amount in the purchase of one ticket.
c. Find the expected value of X, then interpret.

Solution:
a. If a ticket is selected as the first prize winner, the net gain to the purchaser is
₱10,000.00 less the ₱50.00 that was paid for the ticket, hence 𝑥1 = 10,000 – 50
= 9950. There is one such ticket, so the probability of gaining 9950 is one out
1
of one thousand tickets or which is equal to 0.001. If it is selected as the
1000
second prize winner, the net gain to the purchaser is ₱5,000.00 less the ₱50.00,
1
hence 𝑥2 = 5,000 – 50 = 4950 with a probability of or 0.001. If it is selected
1000
as the third prize winner, the net gain to the purchaser is ₱2,500.00 less the
1
₱50.00, hence 𝑥3 = 2,500 – 50 = 2450 with a probability of or 0.001. But if
1000
the ticket was not selected to win the prize, the purchaser lost ₱50.00 that was
paid for the ticket, hence 𝑥4 = – 50 with a probability of 997 out of 1000 tickets
997
or which is equal to 0.997.
1000

37
Below is the probability distribution:
𝒙𝒊 9950 4950 2450 -50
𝑷(𝒙𝒊 ) 0.001 0.001 0.001 0.997

b. If we let W denote the event that a ticket is selected to win one of the
prizes. Using the table
The probability of winning the first prize is 0.001.
The probability of winning the second prize is 0.001.
The probability of winning the third prize is 0.001.

Hence 𝑃(𝑊) = 0.001 + 0.001 + 0.001 = 0.003

c. Using the formula of expected value or mean.

𝐸 (𝑥) = 9950(0.001) + 4950(0.001) + 2450(0.001) + (−50)(0.997)
𝐸 (𝑥) = −32.50

The negative value means one loses money on the average. In particular, if
someone were to buy tickets repeatedly, and although he would win now and
then, on average he would lose thirty two pesos and fifty cents per ticket
purchased.

You may now go back to the problem of Cardo and apply what you have learned
from example 1.

To answer item number 3: If Cardo decided to buy one ticket, what is the
probability that he would win the prize if 500 tickets were sold? What is the
probability that Cardo will lose the bet?

Solution:
1
You need to compute for the probability of the two events. Cardo will have
500
499
or 0.002 chance to win the prize and or 0.998 chance to lose it. It is also
500
clear that he will gain ₱15,000.00 less ₱100.00 or ₱14,900.00 if he wins the
prize and his ₱100.00 will be wasted if he will lose the prize.
The concept of expected value is also applicable to the insurance industry, as
illustrated by the example below.

EXAMPLE A life insurance company will sell a ₱250,000.00 one-year term

2 life insurance policy for members of armed forces of the
Philippines for a premium of ₱200.00. Find the expected value to the company
of a single policy if a member of the armed forces police has a 99% chance of
surviving one year?

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Solution:
Let X denotes the net gain to the company from the sale of one policy. There
are two possibilities: the insured person lives the whole year or the injured
person dies before the year is finished. Applying the “income minus expenses”
principle, in the first case the value of X = 200 – 0; in the latter case it is 200 –
250,000 = - 249,800. Since the probability in the first case is 99.98% or 0.9998
and in the latter case is 1 – 0.9998 = 0.0002, the probability distribution for X is:

𝑥 200 -249,800
𝑃(𝑥) 0.9998 0.0002
Therefore

𝐸 (𝑋 ) = ∑ 𝑥𝑃 (𝑥) = 200(0.9998) + (−249,800)(0.0002)

𝐸 (𝑥) = 150
Interpretation:
Sometimes the company may lose a large amount of money on a policy, but
typically gains ₱200.00, which by the computation of E(X) gives a net of
₱150.00 on the average per policy sold.

Application
LET’S PLAY A GAME
Use the formula you have learned to solve the following real life problems
(games of chance) involving mean and variance of a discrete random variable.
Use the back of this page or a separate sheet of paper for your computations,
use of calculator would be a help. Enjoy and happy working .
Game of Chance 1. (Raffle Tickets)
Two thousand tickets are sold for ₱20.00 each. One ticket will win ₱10,000.00,
two tickets will win ₱5,000.00 each and three tickets will win ₱1,000.00 each.
Let X denotes the net gain from the purchase of a randomly selected ticket.
a. Construct the probability distribution of X.
b. Find the probability of winning any amount in the purchase of one ticket.
c. Find the expected value of X, then interpret.

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Game of Chance 2. (A roulette wheel)
A roulette wheel in a fiesta carnival has the numbers 1 through 30. If you bet
₱5.00 you will have a chance to win a prepaid load worth ₱100.00. Find the
expectation if you play a bet.
Game of Chance 3. (Lottery)
A lotto works by picking 6 numbers from 1- 42 (Combinations of numbers from
1-42 taken 6 at a time produce 5,245,786 number combinations). A ticket costs
₱24.00 to play the lottery. If you win today, you would win 5 million pesos after
taxes. If you play the lottery today, what would be your expected winnings or
losses?
Take It or Leave It 4. (Body Parts Insurance Investment)
An insurance company will sell a ₱500,000.00 one-year term legs insurance
policy for ramp models for a premium of ₱500.00. Find the expected value to
the company of a single policy if a model has a 99.96% chance of being
uninjured in one year?

Compare your answers with those found in the Answer Key on the last part of
this module. Did you get all items correct? Great! If you did, you learned the
lesson well. If you were not able to get the correct answer, review your
computations.

Reflection

Taking chances is a gamble, you may

win or lose, but the beauty out of it is the
lesson that you will learn.

Please share your thoughts here.

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 POST - TEST

You are now ready to take another chance to know where you are so far. With
your effort and determination I believe you can do it once again. Good Luck.

Direction: Solve the following real life problems.

1. One thousand tickets are sold for ₱50.00 each. One ticket will
A B C Dwin ₱10,000.00, two tickets will win ₱5,000.00 each and three
tickets will win ₱1,000.00 each. If X denotes the net gain from the
purchase of a randomly selected ticket, which of the following
tables of values shows the probability distribution of X?
x 10,000 5,000 1,000 -50
A. 1 2 3 994
P(x)
1000 1000 1000 1000

x 10,000 5,000 1,000 -50

B. 1 2 3 1
P(x)
999 998 997 999

x 9,950 4,950 950 -50

C. 1 2 3 994
P(x)
1000 1000 1000 1000

x 9.950 4,950 1,000 -50

D. 1 2 3 1
P(x)
999 998 997 999

2. What is the mean or the expected value of item number 1?

A B C D(Refer to problem number 1)
A. - 25 B. - 27 C. 25 D. 27

3. You buy three ₱1,000.00 raffle tickets for a prize of a new 20-
A B C Dpassenger Sarao jeepney valued at ₱800, 000.00. Two thousand
tickets are sold. What is the probability of winning the prize in the
purchase of three tickets?
1 2 3 4
A. B. C. D.
2000 2000 2000 2000

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 4. A roulette wheel in an amusement park has the numbers 1
A B C Dthrough 60. If you bet ₱100.00 you will have a chance to win a
cellular phone worth 5,000.00. How much the organizer will earn
if 100 games will be played?
A. ₱50,000.00 C. ₱150,000.00
B. ₱100, 000.00 D. ₱200,000.00

5. A life insurance company will sell a 1 million three-year term life

A B C Dinsurance policy exclusive in a particular risk group for a
premium of ₱2,000.00. Find the expected value to the company
of a single policy if a person in this risk group has a 99.95%
chance of surviving three years?
A. ₱1,500.00 C. ₱1,800.00
B. ₱1,690.00 D. ₱1,950.00

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