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Problem Solving Involving Mean and Variance

The document discusses calculating the mean and variance of probability distributions. It provides examples of finding the expected value and variance for different probability distributions involving monetary gains from raffles and coin tosses. The mean is the average value expected over many trials, while variance measures how spread out the possible values are from the mean. Formulas are given for calculating both the expected value and variance from the probabilities and possible outcomes of a random variable.

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6K views12 pages

Problem Solving Involving Mean and Variance

The document discusses calculating the mean and variance of probability distributions. It provides examples of finding the expected value and variance for different probability distributions involving monetary gains from raffles and coin tosses. The mean is the average value expected over many trials, while variance measures how spread out the possible values are from the mean. Formulas are given for calculating both the expected value and variance from the probabilities and possible outcomes of a random variable.

Uploaded by

Niña de Luna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Problems Involving Mean

and Variance of
Probability Distribution
a. interprets the mean and the variance of a discrete random
variable.

b. solves problems involving mean and variance of probability


distributions
ENTRY CARD

Complete the table below and find the mean of the following
probability distribution.
X P(x) X • P(x)
2 0.10 0.2
 
4 0.23  
0.92
6 0.25 1.  5
8 0.36 2.88
 
10 0.06 0.6
 

E(X) = 6. 1
The mean of a discrete random variable can be
thought of as “anticipated” value. It is the average
to be the result when a random experiment is
continually repeated. It is the sum of the possible
outcomes of the experiment multiplied by their
corresponding probabilities.
Just like in the previous topic, the mean will be
called expected value.
Alternative Method
The variance of a discrete random variable can also be
determined by subtracting the square of its mean from the
summation of the products of the squares of the outcomes
and their corresponding probabilities.
Hence, the following formula:
σ2 = ∑ [ x2 P(x) ] – ( ∑ [ xP(x) ] )2
x P(x) xP(x) x2 x2 P(x)
0 0. 1 0 0 (0)(0.1) = 0
1 0. 2 0. 2 1 (1)(0.2) = 0. 2
2 0. 3 0. 6 4 (4)(0.3) = 1.2
3 0. 3 0. 9 9 (9)(0.3) = 2. 7
4 0. 1 0. 4 16 (16)(0.1) = 1. 6
    ∑ [ xP(x) ] = 2. 1   ∑ [ (x2 P(x) ] = 5. 7

σ2 = ∑ [ x2 P(x) ] – ( ∑ [ xP(x) ] )2 To find the standard deviation,


= 5. 7 – (2. 1) 2  
σ=
= 5. 7 – 4. 41 = 1. 14
= 1. 29
EXAMPLE No. 1: The officers of SJA Class 71 decided to conduct
a lottery for the benefit of the less privileged students of their
alma mater. Two hundred tickets will be sold. One ticket will
win Php 5 000.00 price and the other tickets will win nothing. If
you will buy one ticket, what will be your expected gain?

 
Solution:
One ticket have a gain of Php 5 000 but the probability of
winning will only be . The remaining tickets will have a gain of
Php 0 and the probability will be
X P(x) X • P(x)
0 0.995 0
5 000 0.005 25
    ∑ [ xP(x) ] = 25

E (X) = ∑ [ xP(x) ]

= 25

The expected gain is Php 25. 00.


EXAMPLE No. 2: The officers of the faculty club of a public high
school are planning to sell 160 tickets to be raffled during the
Christmas party. One ticket will win Php 3 000. 00. The other
tickets will win nothing. If you are a faculty member of the school
and you will buy one ticket, what will be the expected value and
variance of your gain?

x P(x) x • P(x) x2P(x)


0 0.99375 0 0
3 000 0.00625 18.75 56 250
    ∑ [ xP(x) ] = 18. 75 ∑ [x2P(x) ] = 56 250
x P(x) X • P(x) x2P(x)
0 0.99375 0 0
3 000 0.00625 18.75 56 250
∑ [ xP(x) ] = 18. 75 ∑ [x2P(x) ] = 56 250

a. E (X) = ∑ [ xP(x) ] b. σ2 = ∑ [x2P(x) ] – ( ∑ [ xP(x) ] )2

= 18. 75 = 55 898. 44

The expected value is Php 18. 75.


The variance of your gain is 55 898. 44 and it indicates how spread
out the values of x are around mean. Given this large value, this
shows that the values are very far away from each other.
EXAMPLE No. 3: Jack tosses an unbiased coin. He receives Php
50. 00 if a head appears and he pays Php 30. 00 if a tail appears.
Find the expected value and variance of his gain.
x P(x) X • P(x) x2P(x)
- 30 0. 5 - 15 450
50 0. 5 25 1 250
    ∑ [ xP(x) ] = 10 ∑ [x2P(x) ] = 1 700
a. E (X) = ∑ [ xP(x) ] b. σ2 = ∑ [x2P(x) ] – ( ∑
[ xP(x) ] )2
= 10 = 1 700 – (10)2
= 1 700 – 100
= 1 600

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