CHAPTER 5

DISCRETE RANDOM
VARIABLES AND THEIR
PROBABILITY
DISTRIBUTIONS
RANDOM VARIABLES

Discrete Random Variable

Continuous Random Variable

Prem Mann, Introductory Statistics, 7/E

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Table 5.1 Frequency and Relative Frequency Distribution
of the Number of Vehicles Owned by Families
RANDOM VARIABLES

● Definition
● A random variable is a variable whose
value is determined by the outcome of a
random experiment.
Discrete Random Variable

● Definition
● A random variable that assumes countable
values is called a discrete random
variable.
 Examples of discrete random variables

1. The number of cars sold at a dealership during a

given month
2. The number of houses in a certain block
3. The number of fish caught on a fishing trip
4. The number of complaints received at the office of
an airline on a given day
5. The number of customers who visit a bank during
any given hour
6. The number of heads obtained in three tosses of
a coin
 Continuous Random Variable

● Definition
● A random variable that can assume any value
contained in one or more intervals is called a
continuous random variable.
Continuous Random Variable
Examples of continuous random variables

1. The height of a person

2. The time taken to commute from home to
work
3. The weight of a fish
4. The price of a house
PROBABLITY DISTRIBUTION OF A
DISCRETE RANDOM VARIABLE

● Definition
● The probability distribution of a
discrete random variable lists all the
possible values that the random variable
can assume and their corresponding
probabilities.
 Example 5-1

● Recall the frequency and relative frequency

distributions of the number of vehicles owned
by families given in Table 5.1. That table is
reproduced below as Table 5.2. Let x be the
number of vehicles owned by a randomly
selected family. Write the probability
distribution of x.
Table 5-2 Frequency and Relative Frequency Distributions
of the Number of Vehicles Owned by Families
Example 5-1: Solution
 Two Characteristics of a Probability Distribution

● The probability distribution of a discrete

random variable possesses the following
two characteristics.

1. 0 ≤ P (x) ≤ 1 for each value of x

2. ΣP (x) = 1.
Figure 5.1 Graphical presentation of the
probability distribution of Table 5.3.
 Example 5-2

● Each of the following tables lists certain

values of x and their probabilities.
Determine whether or not each table
represents a valid probability distribution.
Example 5-2

a) No, since the sum of all probabilities is not

equal to 1.0.
b) Yes
c) No since one of the probabilities is
negative.
 Example 5-3

● The following table lists the probability

distribution of the number of breakdowns per
week for a machine based on past data.
Example 5-3

a) Present this probability distribution

graphically.
b) Find the probability that the number of
breakdowns for this machine during a
given week is
i. exactly 2 ii. 0 to 2
iii. more than 1 iv. at most 1
Example 5-3: Solution
● Let x denote the number of breakdowns for
this machine during a given week. Table 5.4
lists the probability distribution of x.
Example 5-3: Solution

(b) Using Table 5.4,

i. P(exactly 2 breakdowns) = P(x = 2) = .35
ii. P(0 to 2 breakdowns) = P(0 ≤ x ≤ 2)
= P(x = 0) + P(x = 1) + P(x = 2)
= .15 + .20 + .35 = .70
iii. P(more then 1 breakdown) = P(x > 1)
= P(x = 2) + P(x = 3)
= .35 +.30 = .65
iv. P(at most one breakdown) = P(x ≤ 1)
= P(x = 0) + P(x = 1)
= .15 + .20 = .35
Example 5-4

● According to a survey, 60% of all students

at a large university suffer from math
anxiety. Two students are randomly
selected from this university. Let x denote
the number of students in this sample who
suffer from math anxiety. Develop the
probability distribution of x.
 Example 5-4: Solution

● Let us define the following two events:

N = the student selected does not suffer from
math anxiety
M = the student selected suffers from math
anxiety

P(x = 0) = P(NN) = .16

P(x = 1) = P(NM or MN) = P(NM) + P(MN)
● = .24 + .24 = .48
P(x = 2) = P(MM) = .36
Figure 5.3 Tree diagram.
Table 5.5 Probability Distribution of the Number of
Students with Math Anxiety in a Sample of Two Students
MEAN OF A DISCRETE RANDOM
VARIABLE

The mean of a discrete variable x is the value

that is expected to occur per repetition, on average,
if an experiment is repeated a large number of
times. It is denoted by µ and calculated as
µ = Σ x P(x)

The mean of a discrete random variable x is also

called its expected value and is denoted by E(x); that
is,
E(x) = Σ x P(x)
Example 5-5
● Recall Example 5-3 of Section 5-2. The probability
distribution Table 5.4 from that example is
reproduced on the next slide. In this table, x
represents the number of breakdowns for a
machine during a given week, and P(x) is the
probability of the corresponding value of x.
Example 5-5

● Find the mean number of breakdown per week for

this machine.
Example 5-5: Solution
Table 5.6 Calculating the Mean for the Probability
Distribution of Breakdowns

The mean is µ = Σx P(x) = 1.80

STANDARD DEVIATION OF A DISCRETE
RANDOM VARIABLE

● The standard deviation of a discrete

random variable x measures the spread
of its probability distribution and is
computed as
Example 5-6

● Baier’s Electronics manufactures computer parts

that are supplied to many computer companies.
Despite the fact that two quality control inspectors
at Baier’s Electronics check every part for defects
before it is shipped to another company, a few
defective parts do pass through these inspections
undetected. Let x denote the number of defective
computer parts in a shipment of 400. The following
table gives the probability distribution of x.
Example 5-6

Compute the standard deviation of x.

Example 5-6: Solution
Example 5-7

● Loraine Corporation is planning to market a new

makeup product. According to the analysis made
by the financial department of the company, it will
earn an annual profit of $4.5 million if this product
has high sales and an annual profit of $ 1.2 million
if the sales are mediocre, and it will lose $2.3
million a year if the sales are low. The probabilities
of these three scenarios are .32, .51 and .17
respectively.
Example 5-7

a) Let x be the profits (in millions of dollars)

earned per annum from this product by
the company. Write the probability
distribution of x.
b) Calculate the mean and the standard
deviation of x.
Example 5-7: Solution
a) The table below lists the probability
distribution of x. Note that because x
denotes profits earned by the company,
the loss is written as a negative profit in
the table.
Example 5-7: Solution
b) Table 4.8 shows all the calculations needed for
the computation of the mean and standard
deviations of x.
Table 5.8 Computations to Find the Mean and
Standard Deviation
Interpretation of the Standard Deviation
The standard deviation of a discrete random
variable can be interpreted or used the same
way as the standard deviation of a data set in
Section 3.4 of Chapter 3.
FACTORIALS, COMBINATIONS, AND
PERMUTATIONS
● Factorials

● Definition
● The symbol n!, read as “n factorial,”
represents the product of all the integers
from n to 1. In other words,
● n! = n(n - 1)(n – 2)(n – 3) · · · 3 · 2 · 1
● By definition,
● 0! = 1
Examples
Evaluate 7!

7! = 7 · 6 · 5 · 4 · 3 · 2 · 1 = 5040

Evaluate 10!

10! = 10 · 9 · 8 · 7 · 6 · 5 · 4 · 3 · 2 · 1
= 3,628,800

Evaluate (12-4)!

(12-4)! = 8! = 8 · 7 · 6 · 5 · 4 · 3 · 2 · 1
= 40,320
Example 5-11

Evaluate (5-5)!

(5-5)! = 0! = 1
Note that 0! is always equal to 1.
 FACTORIALS, COMBINATIONS, AND
PERMUTATIONS
● Combinations

● Definition
● Combinations give the number of ways x elements
can be selected from n elements. The notation used
to denote the total number of combinations is

● which is read as “the number of combinations of n

elements selected x at a time.”
Combinations
Combinations
● Number of Combinations
● The number of combinations for selecting x from
n distinct elements is given by the formula

● where n!, x!, and (n-x)! are read as “n factorial,”

“x factorial,” “n minus x factorial,” respectively.
Example 5-12
● An ice cream parlor has six flavors of ice
cream. Sadia wants to buy two flavors of ice
cream. If she randomly selects two flavors
out of six, how many combinations are
there?
 Example 5-12: Solution
● n = total number of ice cream flavors = 6
● x = # of ice cream flavors to be selected = 2

Thus, there are 15 ways for to select two ice

cream flavors out of six.
Example 5-13

● Three members of a jury will be randomly

selected from five people. How many
different combinations are possible?
● n = 5 and x = 3
Example 5-14
● Marv & Sons advertised to hire a financial analyst.
The company has received applications from 10
candidates who seem to be equally qualified. The
company manager has decided to call only 3 of
these candidates for an interview. If she randomly
selects 3 candidates from the 10, how many total
selections are possible?

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 Example 5-14: Solution
● n = 10 and x = 3

● Thus, the company manager can select 3

applicants from 10 in 120 ways.

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Permutations
● Permutations Notation
● Permutations give the total selections of x element
from n (different) elements in such a way that the
order of selections is important. The notation used
to denote the permutations is

● which is read as “the number of permutations of

selecting x elements from n elements.”
Permutations are also called arrangement.

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Permutations
● Permutations Formula
●
● The following formula is used to find the number of
permutations or arrangement of selecting x items
out of n items. Note that here, the n items should
all be different.

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Example 5-15
● A club has 20 members. They are to select three
office holders – president, secretary, and
treasurer – for next year. They always select
these office holders by drawing 3 names
randomly from the names of all members. The
first person selected becomes the president, the
second is the secretary, and the third one takes
over as treasurer. Thus, the order in which 3
names are selected from the 20 names is
important. Find the total arrangements of 3
names from these 20.

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 Example 5-15: Solution
● n = total members of the club = 20
● x = number of names to be selected = 3

● Thus, there are 6840 permutations or

arrangement for selecting 3 names out of 20.

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THE BINOMIAL PROBABILITY
DISTRIBUTION

The Binomial Experiment

The Binomial Probability Distribution and
Binomial Formula
Using the Table of Binomial Probabilities
Probability of Success and the Shape of the
Binomial Distribution
Mean and Standard Deviation of the
Binomial Distribution

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The Binomial Experiment

Conditions of a Binomial Experiment

A binomial experiment must satisfy the
following four conditions.
1. There are n identical trials.
2. Each trail has only two possible outcomes.
3. The probabilities of the two outcomes remain
constant.
4. The trials are independent.

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Example 5-16

● Consider the experiment consisting of 10

tosses of a coin. Determine whether or
not it is a binomial experiment.

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 Example 5-16: Solution
● 1. There are a total of 10 trials (tosses), and they
are all identical. Here, n=10.
● 2. Each trial (toss) has only two possible
outcomes: a head and a tail.
● 3. The probability of obtaining a head (success) is
½ and that of a tail (a failure) is ½ for any toss.
That is,
● p = P(H) = ½ and q = P(T) = ½
● 4. The trials (tosses) are independent.
● Consequently, the experiment consisting of 10
tosses is a binomial experiment.
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Example 5-17

● Five percent of all DVD players

manufactured by a large electronics
company are defective. Three DVD players
are randomly selected from the production
line of this company. The selected DVD
players are inspected to determine whether
each of them is defective or good. Is this
experiment a binomial experiment?

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 Example 5-17: Solution
● 1. This example consists of three identical trials.
● 2. Each trial has two outcomes: defective or
good.
● 3. The probability p that a DVD player is defective
is .05. The probability q that a DVD player is
good is .95.
● 4. Each trial (DVD player) is independent.

● Because all four conditions of a binomial

experiment are satisfied, this is an example of a
binomial experiment.
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The Binomial Probability Distribution and
Binomial Formula
● For a binomial experiment, the probability of
exactly x successes in n trials is given by the
binomial formula
●

● where
● n = total number of trials
● p = probability of success
● q = 1 – p = probability of failure
● x = number of successes in n trials
● n - x = number of failures in n trials

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Example 5-18

● Five percent of all DVD players

manufactured by a large electronics
company are defective. A quality control
inspector randomly selects three DVD
player from the production line. What is the
probability that exactly one of these three
DVD players is defective?

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Figure 5.4 Tree diagram for selecting three DVD Players.

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 Example 5-18: Solution

● Let
D = a selected DVD player is defective P(D)=.05
● G = a selected DVD player is good P(G)=.95

● P(DGG) = P(D) P(G) P(G)

= (.05)(.95)(.95) = .0451
P(GDG) = P(G) P(D) P(G)
= (.95)(.05)(.95) = .0451
P(GGD) = P(G) P(G) P(D)
= (.95)(.95)(.05) = .0451

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Example 5-18: Solution

P(1 DVD player in 3 is defective)

= P(DGG or GDG or GGD)
= P(DGG) + P(GDG) + P(GGD)
= .0451 + .0451 + .0451
= .1353

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 Example 5-18: Solution

● n = total number of trials = 3 DVD players

x = number of successes = number of
defective DVD players = 1
n – x = number of failures = number of good
DVD players = 3 - 1 = 2
p = P(success) = .05
q = P(failure) = 1 – p = .95

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Example 5-18: Solution
The probability of selecting exactly one
defective DVD player is

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Example 5-19
● At the Express House Delivery Service, providing
high-quality service to customers is the top priority
of the management. The company guarantees a
refund of all charges if a package it is delivering
does not arrive at its destination by the specified
time. It is known from past data that despite all
efforts, 2% of the packages mailed through this
company do not arrive at their destinations within
the specified time. Suppose a corporation mails 10
packages through Express House Delivery Service
on a certain day.

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Example 5-19

a) Find the probability that exactly one of

these 10 packages will not arrive at its
destination within the specified time.
b) Find the probability that at most one of
these 10 packages will not arrive at its
destination within the specified time.

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 Example 5-19: Solution

● n = total number of packages mailed = 10

p = P(success) = .02
q = P(failure) = 1 – .02 = .98

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 Example 5-19: Solution
● x = number of successes = 1
a) n – x = number of failures = 10 – 1 = 9

● Thus, there is a .1667 probability that

exactly one of the 10 packages mailed will
not arrive at its destination within the
specified time.
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Example 5-19: Solution
b) At most one • x = 0 and x = 1

● Thus, the probability that at most one of

the 10 packages mailed will not arrive at
its destination within the specified time is
.9838.
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Example 5-20

● In a Robert Half International survey of senior

executives, 35% of the executives said that good
employees leave companies because they are
unhappy with the management (USA TODAY,
February 10, 2009). Assume that this result holds
true for the current population of senior
executives. Let x denote the number in a random
sample of three senior executives who hold this
opinion. Write the probability distribution of x and
draw a bar graph for this probability distribution.

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Example 5-20: Solution

n = total senior executives in the sample = 3

p = P(a senior executive holds the said opinion) =
.35
q = P(a senior executive does not hold the said
opinion) = 1 - .35 = .65

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Example 5-20: Solution

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Table 5.9 Probability Distribution of x

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Figure 5.5 Bar graph of the probability distribution
of x.

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Using the Table of Binomial Probabilities

● Table I in Appendix C, the table of binomial

probabilities.
● List the probabilities of x for n = 1 to n = 25.
● List the probabilities of x for selected values of p.

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Example 5-21

● In an Accountemps survey of senior executives,

30% of the senior executives said that it is
appropriate for job candidates to ask about
compensation and benefits during the first
interview (USA TODAY, April 13, 2009). Suppose
that this result holds true for the current
population of senior executives in the United
States. A random sample of six senior executives
is selected. Using Table I of Appendix C, answer
the following.

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Example 5-21
a) Find the probability that exactly three senior
executives in this sample hold the said opinion.
b) Find the probability that at most two senior
executives in this sample hold the said opinion.
c) Find the probability that at least three senior
executives in this sample hold the said opinion.
d) Find the probability that one to three senior
executives in this sample hold the said opinion.
e) Let x be the number of senior executives in
this sample hold the said opinion. Write the
probability distribution of x, and draw a bar
graph for this probability distribution.

Prem Mann, Introductory Statistics, 7/E

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Table 5.10 Determining P(x = 3) for n = 6 and p = .30

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Table 5.11 Portion of Table I for n = 6 and p= .30

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 Example 5-21: Solution

(a) P(x = 3) = .1852

(b) P(at most 2) = P(0 or 1 or 2)
= P(x = 0) + P(x = 1) + P(x = 2)
= .1176 + .3025 + .3241 = .7442
(c) P(at least 3) = P(3 or 4 or 5 or 6)
= P(x = 3) + P(x = 4) + P(x =5) + P(x = 6)
= .1852 + .0595 + .0102 + .0007
= .2556
(d) P(1 to 3) = P(x = 1) + P(x = 2) + P(x = 3)
= .3025 + .3241 + .1852 = .8118

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Table 5.12 Probability Distribution of x for n = 6
and p= .30

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Figure 5.6 Bar graph for the probability
distribution of x.

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Probability of Success and the Shape of the
Binomial Distribution
1. The binomial probability distribution is symmetric
if p = .50.
2. The binomial probability distribution is skewed to
the right if p is less than .50.
3. The binomial probability distribution is skewed to
the left if p is greater than .50.

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Table 5.13 Probability Distribution of x for n = 4
and p= .50

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Figure 5.7 Bar graph from the probability
distribution of Table 5.13.

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Table 5.14 Probability Distribution of x for n = 4
and p= .30

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Figure 5.8 Bar graph from the probability
distribution of Table 5.14.

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Table 5.15 Probability Distribution of x for n = 4
and p= .80

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Figure 5.9 Bar graph from the probability
distribution of Table 5.15.

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Mean and Standard Deviation of the Binomial
Distribution

The mean and standard deviation of a

binomial distribution are, respectively,

where n is the total number of trails, p is the

probability of success, and q is the probability
of failure.

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Example 5-22

According to a Harris Interactive survey

conducted for World Vision and released in
February 2009, 56% of teens in the United States
volunteer time for charitable causes. Assume
that this result is true for the current population
of U.S. teens. A sample of 60 teens is selected.
Let x be the number of teens in this sample who
volunteer time for charitable causes. Find the
mean and standard deviation of the probability
distribution of x.

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Example 5-22: Solution
n = 60 p = .56, and q = .44
Using the formulas for the mean and
standard deviation of the binomial
distribution,

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THE POISSON PROBABILITY
DISTRIBUTION

Using the Table of Poisson probabilities

Mean and Standard Deviation of the
Poisson Probability Distribution

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THE POISSON PROBABILITY
DISTRIBUTION

Conditions to Apply the Poisson Probability

Distribution

The following three conditions must be satisfied to

apply the Poisson probability distribution.
1. x is a discrete random variable.
2. The occurrences are random.
3. The occurrences are independent.

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Examples of Poisson Probability Distribution

1. The number of accidents that occur on a

given highway during a 1-week period.
2. The number of customers entering a
grocery store during a 1–hour interval.
3. The number of television sets sold at a
department store during a given week.

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THE POISSON PROBABILITY
DISTRIBUTION
Poisson Probability Distribution Formula

According to the Poisson probability

distribution, the probability of x occurrences in
an interval is

where λ (pronounced lambda) is the mean number

of occurrences in that interval and the value of e
is approximately 2.71828.

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Example 5-25

On average, a household receives 9.5

telemarketing phone calls per week. Using
the Poisson distribution formula, find the
probability that a randomly selected
household receives exactly 6 telemarketing
phone calls during a given week.

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Example 5-25: Solution

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Example 5-26

A washing machine in a laundromat breaks

down an average of three times per month.
Using the Poisson probability distribution
formula, find the probability that during the
next month this machine will have

a) exactly two breakdowns

b) at most one breakdown

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Example 5-26: Solution

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Example 5-27
Cynthia’s Mail Order Company provides free
examination of its products for 7 days. If not
completely satisfied, a customer can return the
product within that period and get a full refund.
According to past records of the company, an
average of 2 of every 10 products sold by this
company are returned for a refund. Using the
Poisson probability distribution formula, find the
probability that exactly 6 of the 40 products sold
by this company on a given day will be returned
for a refund.

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Example 5-27: Solution
λ = 8, x = 6

Thus, the probability is .1221 that exactly 6

products out of 40 sold on a given day will be
returned.

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Case Study 5-3 Ask Mr. Statistics

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Using the Table of Poisson Probabilities

Table III in appendix C, the table of Poisson

probabilities.

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Example 5-28

On average, two new accounts are opened

per day at an Imperial Saving Bank branch.
Using Table III of Appendix C, find the
probability that on a given day the number
of new accounts opened at this bank will be
a) exactly 6 b) at most 3 c) at least 7

Prem Mann, Introductory Statistics, 7/E

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Table 5.16 Portion of Table III for λ = 2.0

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 5-28: Solution
a) P(x = 6) = .0120
b) P(at most 3) = P(x = 0) + P(x = 1) + P(x = 2) +
P(x = 3) =.1353 +.2707 + .2707 + .1804 =
.8571
c) P(at least 7) = P(x = 7) + P(x = 8) + P(x = 9)
= .0034 + .0009 + .0002 = .0045

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 5-29
An auto salesperson sells an average of .9
car per day. Let x be the number of cars
sold by this salesperson on any given day.
Using the Poisson probability distribution
table, write the probability distribution of x.
Draw a graph of the probability
distribution.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Table 5.17 Probability Distribution of x for λ = .9

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Figure 5.10 Bar graph for the probability
distribution of Table 5.17.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Mean and Standard Deviation of the Poisson
Probability Distribution

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 5-29
An auto salesperson sells an average of
.9 car per day. Let x be the number of
cars sold by this salesperson on any
given day. Find the mean, variance, and
standard deviation.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved