MEAN AND VARIANCE

OF RANDOM
VARIABLE
AFTER THIS LESSON, YOU SHOULD BE ABLE TO:
• Illustrate the mean and variance of discrete and
continuous random variable.
• Calculate the mean and variance of discrete and
continuous random variable.
• Solve problems related to mean and variance and
interpret results.
MEAN AND VARIANCE OF DISCRETE RANDOM
VARIABLES

• The mean of discrete random variables, also

knowns as the expected value, is the
weighted average of all possible values of
the random variables. The symbol used for
mean is µ.
• The variance is a measure of spread of
dispersion. It measures the variation of the
values of a random variable from the mean.
The symbol used for the variance is ______.
• Standard deviation is the square root of
variance.
ILLUSTRATIVE EXAMPLE

• Students were asked to estimate the length (In inches )of a table. The errors in the
estimated values were recorded and tabulated as follows:
• Find the mean error of this probability distribution.
• Determine the variance and the standard deviation.
Error x 3 4 5 6 7

P(X=x) 0.25 0.1 0.3 0.15 0.2

EXAMPLE

• The report of a weather bureau on the forecast of the number of typhoons entering the
country’s area of responsibility is manifested in the following probability distribution.

No. of typhoons per month Probability P (X=x)

0 0.15
1 0.35
2 0.30
3 0.10
4 0.10
• A. What is the average of typhoon
entering the country per month?
• B. What is the standard deviation?
 CHECK YOUR PROGRESS
• A certain company recently opened some job opportunities. The probability of hiring X
additional employees among the applicants is as shown:
• Compute for the mean, variance and standard deviation.

No of 1 2 3 4 5
additional
employees

Probability 0.1 0.15 0.16 0.29 0.3

P (X=x)
• The data shows the company’s probability of earning
projected profit for one year. Solve for the average
projected profit and the standard deviation.
Profit (in million) Probability (in percent)

5.6 20
4.7 15
8.2 18
3.3 35
10.0 12
• Determine the mean, variance and standard deviation

Win 0 1 2 3
record
(x)
P(X=x) 1/4 1/4 1/4 1/4
NORMAL
DISTRIBUTION AND
STANDARD VARIABLES
• The study of normal distribution plays a significant role in the
analysis and interpretation of a standardized set of data or
probability distribution. Examples of data which follow the
normal distribution are height and weight of individuals, scores
in examination, and popularity of products. Some business and
economic trends conform to this particular probability
distribution.
NORMAL PROBABILITY DISTRIBUTION

• Is a data distribution where the mean,

median, and mode are equal and the
distribution is clustered at the center. The
graph of a normal distribution is a
symmetrical bell-shaped curve.
PROPERTIES OF NORMAL CURVE
• The mean, median and mode are equal and are represented by
the central point along the horizontal axis which determines the
highest point of the curve.
• The curve is symmetric around the mean and is asymptotic to
the horizontal axis;that is , the curve extends indefinitely in both
directions.
• The total area (or probability)under the normal curve is equal to
100% or 1, or 50% or 0.5 to each side from the center.
• Since µ is the central data of a normal distribution
and the data is evenly distributed to its left and right
halves, we can assign µ as our zero mask. Also ,
since σ is the measure of how well-dispersed the
data is from the center, we can make it our unit count
for regrouping our data into subintervals.
STANDARD SCORE OR Z-SCORE

• Is the equivalent value of raw score expressed in

terms of the mean (µ) and the standard deviation
( σ) of the distribution.
• It measures the distance of any particular raw
score (x) from the mean in standard deviation
units.
ILLUSTRATIVE EXAMPLE

• The DG Company has 100 branches nationwide.

The annual profit of DG Company is normally
distributed with the mean of 73 million a year and
standard deviation of P3.25 million. Find the z-
score pertaining to the number of branches having
a sales of P80 million.
• Let’s say you have a test score of 190. The
test has a mean of 150 and a standard
deviation of 25. Assuming a normal
distribution, your z score would be:
FINDING THE AREA OF
A REGION UNDER A
NORMAL CURVE
• Every area under the normal curve corresponds to the
area bounded by µ or z= 0. and the number of units of
the z-score is from the center.
• Each area value is given in percent, which also signifies
the percentage of data found within the interval.
• Half of the curve is equivalent to an area of 0.5 or 50%.
EXAMPLE

•What is the area under the

normal curve from z=0 to z=
0.25?
EXAMPLE

• What is the area under the normal curve from z= 0 to z=

-1.23?
• Find the area under the normal curve from z= 0 to z=
2.25
• Find the area under the normal curve from z= 0 to z= -
1.168.
• Recall the DG Company has 100 branches
nationwide and its annual profit is normally
distributed with a mean of P73 million a year and
a standard deviation of P3.25 million. What
percentage of its branches have a profit of P73
million to P 80 million?
• Determine the percentage of the DG
Company with a profit from P73 million to
P79.6 million. Assuming that the standard
deviation is now P6 million and the mean
remains the same.
• Suppose that 1,000 students took a Math
examination wherein the maximum score that
they can obtain is 100. Their average score is 70
with s standard of the deviation of 5. How many
of the students obtained a score from 70 to 95?
RULES IN FINDING THE NORMAL AREA UNDER A
NORMAL CURVE WITHIN A GIVEN DISTANCE

• If the two z-scores are both positive or both

negative in values, subtract the areas.
• If the two z-scores have different signs, add
the two areas.
EXAMPLE

•What is the area under the standard

normal curve bounded by z= -1.23
and z= 0.25?
• Fifty job applicants took an IQ test and their
scores are normally distributed with a mean
of 100. How many applicants obtained a
score between 74 and 126 if the standard
deviation of their scores is 20?
•Find the area under the
standard normal curve from
z1= 1.13 to z2= 3.06
• How many applicants obtained a score
between 110 and 120 if the standard
deviation of their scores is 20, with a
mean of 100?
 CHECK YOUR PROGRESS (SEATWORK)

• 1. from z=0 to z=1.57

• 2.from z=0 to z= 2.81
• 3.from z= 1.0 to z=3.02
• 4.from z= -0.15 to z= 2.18
• 5. from z=-2.56 to z= -3.04
• Suppose that 1,000 students took a Math examination wherein
the maximum score that they can obtain is 100. Their average
score is 70 with s standard of the deviation of 5.
• 1.How many of the students obtained a score from 70 to 95?
• 2.How many students obtained a score from 85 to 95?
• 3. How many students obtained a score from 60 to 75?
FINDING THE AREA TO
THE REGION TO THE
LEFT OR RIGHT
RULES: HOW TO FIND THE AREA TO THE REGION
TO THE LEFT OR RIGHT OF A POSITIVE Z-SCORE

• Let A be the area bounded by a given positive z-score

• If the required area is to the left of a positive z-score,
then add 50% or 0.5 to the A.
• If the required area is to the right of a positive z-score,
then subtract A from 0.5 to 50%.
• Let A be the area bounded by a given negative z-score
• If the required area is to the right of a negative z-score,
then add 50% or 0.5 to the A.
• If the required area is to the left of a negative z-score,
then subtract A from 0.5 to 50%.
• Find the area under the normal curve if ;
• 1. z > 1.34
• 2. z < 1.34
• 3. z > -1.12
• 4. z < - 1.12
• 5. z > -2.29
EXAMPLE

• How many branches of the DG company

have a profit of less than or equal to P80.5
million if the standard deviation is changed
to P5 million and the mean remains the
same? Recall the mean is P73 million.
SOLVING FOR THE RAW
SCORE GIVEN THE AREA
UNDER THE NORMAL CURVE
EXAMPLE

•Given that µ=60, ∂ =9, and A=

0.3944, find x if the area given under
the normal curve is to the left of the
mean.
•Find the values of z and x
when µ=60 and ∂=9 and the
area is equal to 85.5%
• Recall that there were 50 applicants who took an
IQ test and their mean score was 100 with a
standard deviation of 20. Assuming that the
management decided not to hire the lowest 20%
of the applicants, what was the minimum score to
get hired?
 CHECK YOUR PROGRESS
• The heights of 200 plants in a garden follow a normal distribution with a
mean of 72.3 cm with a standard deviation of 8.9 cm.
• 1. About how many plants whose heights are between 82 and 90 cm?
• 2.About how many plants whose heights are between 70 and 75 cm?
• 3.if 20% of the tallest plants are to be trimmed , then what is the starting
height of the plants that the gardener must choose to trim?
ASSESSMENT
FIND THE AREA UNDER A NORMAL CURVE
BOUNDED BY THE GIVEN MEAN AND X

• 1. µ = 81, x = 71.5, ∂ =9
• 2. µ = 47, x = 55.6, ∂ =4
• 3. µ = 68, x = 78.8, ∂ =6
• 4. µ = 51, x = 69, ∂ =7
• 5. µ = 85, x = 93, ∂ =5
SOLVE THE FOLLOWING PROBLEMS

• 1.The average expenses of Dela Cruz Family is

P12,600 every half of the month with a standard
deviation of P1,570. If their expenses are normally
distributed, what is the probability of the family
consuming less than P11,000 in one half of a
month?
• 2. The mean production of workers in a certain
factory is 10 products per hour with a standard
deviation of 1.5 products per hour. What is the
probability of finishing;
• (a) less than 12.8 products per hour?
• (b) more than 12 products per hour?
• 3.The average weight of insects for a laboratory
experiment is 13.2 g with a standard deviation of 0.8 g.
What is the probability of randomly selecting insects with
weights of ;
• (a) at most 14 g
• (b) 13.1 to 13.6 g)
• 4. The average battery life of a cellphone is
25hours with a standard deviation of 5 hours. If it
allows a normal distribution , how many hours
should be the cut-off in selecting the best 10% in
terms of length of usage time?
• 5. A company’s profit follows a normal
distribution with a mean of P500,000 a
month and a standard deviation of P50,000.
What will be the company’s lowest 20%
possible profit?
USING INTERPOLATION ON THE VALUES

•Interpolation is a process of
determining the unknown values
that lie in between the known
data points
• The middle 60% of the data pertains to the areas
which are 30% each of the left and right of the
mean. Find the x-values that cover the middle
60% under the normal curve if the mean is 1.85
with a standard deviation is 0.13.
LOCATING THE
PERCENTILES UNDER
THE NORMAL CURVE
• For any set of measurements (arranged in ascending or
descending order), a percentile (or a centile)is a point in the
distribution such that is a given number of cases is below it.
• A percentile is a measure of relative standing. It is a descriptive
measure of the relationship of a measurement to the rest of the
data.
EXAMPLE

• In a test in Algebra, you got a score of 82 and you

want to know how you fared in comparison with
your classmates. If your teacher tells you that you
scored at the 90th percentile, it means that 90% of
the grades were lower than yours and 10% were
higher.
• If the relative frequency histogram were used to
show the scores, the 90th percentile would be located
at the point such that 90% of the total area under the
relative frequency histogram lies below the 90th
percentile and 10% lies above.
EXAMPLE

•Find the 95 percentile

th

of a normal curve.
• By definition of P95 , this means
locating an area before (or below) the
point. We want to know what the z-value
is at this point.
•Find the upper 10%
of the normal curve
EXAMPLE

• The results of a nationwide aptitude test in

mathematics are normally distributed with a
mean of 80 and standard deviation of 15.
What is the percentile rank of a score 84?