SLP IN Statistics and Probability 11 Lesson 2
SLP IN Statistics and Probability 11 Lesson 2
SCHOOL
LEARNING PLAN
RESOURCES
Department of Education-Bureau of Learning Resources
Advanced Algebra, Trigonometry and Statistics Textbook
ASSESSMENT
Solve the following probability distribution. Write your answer at the space provided or at
the back of this page
SKILL TO BE DEVELOPED
Accurately construct mathematical models to represent real-life situations
Solution:
The formula in the definition gives
μ = Σx P(x)
μ = (−2)⋅0.21+(1)⋅0.34+(2)⋅0.24+(3.5)⋅0.21=1.135
A service organization in a large town organizes a raffle each month. One thousand raffle
tickets are sold for $1 each. Each has an equal chance of winning. First prize is $300,
second prize is $200, and third prize is $100. Let X denote the net gain from the purchase
of one ticket.
a. Construct the probability distribution of X.
b. Find the probability of winning any money in the purchase of one ticket.
c. Find the expected value of X, and interpret its meaning.
Solution:
a. If a ticket is selected as the first prize winner, the net gain to the purchaser is the $300
prize less the $1 that was paid for the ticket, hence X = 300 − 1 = 299. There is one such
ticket, so P(299) = 0.001. Applying the same “income minus outgo” principle to the second
and third prize winners and to the 997 losing tickets yields the probability distribution:
b. Let W denote the event that a ticket is selected to win one of the prizes. Using the table
P(W)=P(299)+P(199)+P(99)=0.001+0.001+0.001=0.003P(W)=P(299)+P(199)+P(99)=0
.001+0.001+0.001=0.003
c. Using the formula in the definition of expected value,
E(X)=299⋅0.001+199⋅0.001+99⋅0.001+
(−1)⋅0.997=−0.4E(X)=299·0.001+199·0.001+99·0.001+(−1)·0.997=−0.4
The negative value means that one loses money on the average. In particular, if
someone were to buy tickets repeatedly, then although he would win now and then, on
average he would lose 40 cents per ticket purchased.
Definition
The variance, σ2σ2, of a discrete random variable X is the number
σ2=Σ(x−μ)2 P(x)
which by algebra is equivalent to the formula
σ2=[Σx2 P(x)]−μ2
The standard deviation, σ, of a discrete random variable X is the square root of its
variance, hence is given by the formulas
Example:
A discrete random variable x has the following probability distribution: