Scribd
Upload
10 views13 pages

Chapter 2 - Random Variables and Probability Distributions

Chapter 2 covers the concepts of random variables and their probability distributions, distinguishing between discrete and continuous random variables. It explains how to construct discrete probability distributions, calculate the mean and variance, and introduces moments and moment generating functions. The chapter concludes with rules of expectations relevant to random variables.

Uploaded by

Eyuel Ayele
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
10 views13 pages

Chapter 2 - Random Variables and Probability Distributions

Chapter 2 covers the concepts of random variables and their probability distributions, distinguishing between discrete and continuous random variables. It explains how to construct discrete probability distributions, calculate the mean and variance, and introduces moments and moment generating functions. The chapter concludes with rules of expectations relevant to random variables.

Uploaded by

Eyuel Ayele
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 13

Chapter 2:

Random Variables and Probability


Distributions
2.1. The concept and definition of a random variable
 A random variable x represents a numerical value associated
with each outcome of a probability distribution.

 A random variable is discrete if it has a finite or countable


number of possible outcomes that can be listed.
x
0 2 4 6 8 10

 A random variable is continuous if it has an uncountable number


or possible outcomes, represented by the intervals on a number
line.
x
0 2 4 6 8 10
(All measurements are continuous random variables)
2.2. Discrete Random Variables & Their Probability Distributions

A) Discrete Probability Distribution


B) Continuous Probability Distribution
A) A Discrete Probability Distribution lists each possible value the
random variable can assume, together with its probability. A
probability distribution must satisfy the following conditions.

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.

2. The sum of all the probabilities is 1. ΣP (x) = 1


Constructing a Discrete Probability Distribution

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.
2.3. Mean and Variance of a Discrete Probability Distribution

 The mean of a discrete random variable is given by


Expected Value = E(x) = μ = Σ x P(x).
 Each value of x is multiplied by its corresponding probability and
the products are added.
Example: Suppose a fair coin is tossed twice and X is the number of heads
that occur. (a) Find the probability distribution of X, (b) Calculate
the mean and variance of X

x P ( x) xP (x)
0 0.25 0 (0.25) = 0
ΣxP(x) = 1
1 0.50 1 (0.50)= 0.5
2 0.25 2 (0.25) = 0.5 Mean of X = 1
…mean and variance of a discrete probability distribution …(Cont’d)

The variance of a discrete random variable is given by


2 = Σ(x – μ)2P (x).
Example: Refer to the previous example and calculate the
variance of X . The mean is 1

x P ( x) x – μ (x – μ)2 P (x)(x – μ)2 ΣP(x)(x – 2)2


0 0.25 –1 1 0.25 = 0.50
1 0.50 0 0 0
The variance of X is
2 0.25 1 1 0.25 0.50
2.4. Continuous Random Variables and their probability distributions

• A random variable X is continuous if possible values comprise either


a single interval on the number line or a union of disjoint intervals.
• In principle variables such as height, weight, and temperature are
continuous, in practice the limitations of our measuring
instruments restrict us to a discrete (though sometimes very finely
subdivided) world.
Let X be a continuous random variable whose probability density
function is: 𝑓 𝑥 = 3𝑥 2 , 0 < x < 1. What is the probability that x falls
between 0.5 and 1?
X is discrete

E  g  X    g  x  p  x    g  xi  p  xi 
x i

X is continuous


E  g  X    g  x  f  x  dx

2.5. Moments and Moment Generating Functions

The kth moment of X.

k  E  X k 

  xk p  x  if X is discrete
 x
 
  x k f  x  dx if X is continuous
-
The kth moment about zero PDF, 𝐸 𝑋 𝑘 - crude or raw moment

The kth central moment of X, moment about the mean 𝜇

  E  X   

0 k
k
 
   x   k p  x  if X is discrete
 x
 
   x   k f  x  dx if X is continuous
-

where  = 1 = E(X) = the first moment of X .


Rules of Expectations

1. E  c   c where c is a constant

2. E  aX  b   aE  X   b where a, b are constants

3. var  X     E  X    

0 2
2
 
 
 E X   E  X   2  12
2 2

4. var  aX  b   a 2 var  X 
END OF CHAPTER 2

You might also like