Chapter 1 Random Variables and Probability Distribution
Chapter 1 Random Variables and Probability Distribution
Distributions
Probability
Distributions
Random Variables
A random variable x represents a numerical value
associated with each outcome of a probability distribution.
In Words In Symbols
1. The probability of each value of 0 P (x) 1
the discrete random variable is
between 0 and 1, inclusive.
Guidelines
Let x be a discrete random variable with possible
outcomes x1, x2, … , xn.
1. Make a frequency distribution for the possible
outcomes.
2. Find the sum of the frequencies.
3. Find the probability of each possible outcome by
dividing its frequency by the sum of the frequencies.
4. Check that each probability is between 0 and 1 and
that the sum is 1.
Constructing a Discrete Probability Distribution
Example:
The spinner below is divided into two sections. The
probability of landing on the 1 is 0.25. The probability of
landing on the 2 is 0.75. Let x be the number the spinner
lands on. Construct a probability distribution for the
random variable x.
1
x P ( x)
1 0.25 Each probability is
2 between 0 and 1.
2 0.75
Example:
The spinner below is spun two times. The probability of
landing on the 1 is 0.25. The probability of landing on the 2
is 0.75. Let x be the sum of the two spins. Construct a
probability distribution for the random variable x.
1
P (sum of 2) = 0.25 0.25 = 0.0625
Continued.
Constructing a Discrete Probability Distribution
Example continued:
Example continued:
Sum of
P ( x)
spins, x
2 0.0625 Each probability is between
3 0.375 0 and 1, and the sum of the
4 0.5625 probabilities is 1.
Mean
The mean of a discrete random variable is given by
μ = ΣxP(x).
Each value of x is multiplied by its corresponding
probability and the products are added.
Example:
Find the mean of the probability distribution for the sum of
the two spins.
x P ( x) xP (x)
2 0.0625 2(0.0625) = 0.125 ΣxP(x) = 3.5
3 0.375 3(0.375) = 1.125 The mean for the
4 0.5625 4(0.5625) = 2.25 two spins is 3.5.
Variance
The variance of a discrete random variable is given by
2 = Σ(x – μ)2P (x).
Example:
Find the variance of the probability distribution for the sum
of the two spins. The mean is 3.5.
Example:
At a raffle, 500 tickets are sold for Php10 each for two
prizes of Php1000 and 500. What is the expected value of
your gain?
Your gain for the Php1000 prize is Php1000 – Php10= 990.
Your gain for the Php500 prize is Php500 – Php10 = Php490.
Write a probability distribution for the possible gains
(or outcomes).
Continued.
Expected Value
Example continued:
At a raffle, 500 tickets are sold for Php10 each for two prizes of
Php1000 and Php500. What is the expected value of your gain?
Gain, x P ( x)
E(x) = ΣxP(x).
1
Php990 500 1 1 498
990 490 (10)
1 500 500 500
Php490 500
7.00
–Php10 498
500
Because the expected value is
Winning negative, you can expect to lose
no prize
Php7.00 for each ticket you buy.