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Lesson 3 Mean Variance and Standard Deviation of Discrete Random Variable

This lesson covers the concepts of mean, variance, and standard deviation for discrete random variables, including their calculations and interpretations. It provides formulas for computing the mean (expected value) and variance, along with step-by-step examples to illustrate these calculations using probability distributions. Additionally, it explains the significance of variance and standard deviation in understanding the spread of data around the mean.

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29 views36 pages

Lesson 3 Mean Variance and Standard Deviation of Discrete Random Variable

This lesson covers the concepts of mean, variance, and standard deviation for discrete random variables, including their calculations and interpretations. It provides formulas for computing the mean (expected value) and variance, along with step-by-step examples to illustrate these calculations using probability distributions. Additionally, it explains the significance of variance and standard deviation in understanding the spread of data around the mean.

Uploaded by

lebanondelacruz
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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Lesson 3

Mean, Variance and


Standard Deviation of a
Discrete Random Variable
OBJECTIVES

●Illustrate the mean and variance of a discrete


random variable;
●Calculate the mean and the variance of a
discrete random variable;
●Interpret the mean and the variance of a
discrete random variable; and
●Solve problems involving mean and variance
of probability distributions.
Consider the outcomes of a coin tossed as a random event. The probability of
getting tail is ½ or 50%, and the probability of getting head is ½ or 50% also, but
it is hard to predict the outcome that will occur. In this lesson, you will learn how
to determine the likeliHOOD of the happening of an event.

Mean of a Discrete Random Variable

The Mean µ of a discrete random variable is the central value


or average of its corresponding probability mass function. It is
also called
as the Expected Value. It is computed using the formula:

µ = ∑x p(x)

Where x is the outcome and p(x) is the


probability of the outcome.
Mean or Expected
Value
 Itis the weighted average of all
the values that the random
variable X would assume in the
long run.
 The discrete random variable X

assumes values or outcomes in


every trial of an experiment
with their corresponding
probabilities.
Formula

where X=discrete random variable


x=outcome or value of the RV
P(x)=probability of the outcome x
Examples:
1. Determine the mean or Expected Value of random variable below.

Therefore, mean is 2
for the above random
variable.
Example 2. A researcher surveyed the
households in a small town. The random
variable X represents the number of college
graduates in the households. The
probability distribution of X is shown below.
x 0 1 2

P(x) 0.25 0.50 0.25

Find the mean or expected value of X.


Solution:
x 0 1 2
P(x) 0.25 0.50 0.25
x P(x) 0 0.50 0.50
The expected value is 1. So the average
number of college graduates in the
household of the small town is one.
3. The probabilities that a customer will buy 1, 2, 3, 4, or 5 items in a grocery
3 1 1 2 3
store are 10,10,10, 10, and 10, respectively. What is the average number of items

that a customer will buy?

To solve the above problem, we will follow 3 steps below.

STEPS IN FINDING THE MEAN


Step 1: Construct the probability distribution for the random variable X
representing the number of items that the customer will buy.

Step 2: Multiply the value of the random variable X by the corresponding


probability.

Step 3: Add the results obtained in Step 2. Results obtained is the mean of
the probability distribution.
Solution:
Solution Continuation

So, the mean of the probability distribution is 3.1. This implies that the average number of items that the
customer will buy is 3.1.
Example 4 A random variable X has the
probability distribution. Calculate E(X).

x P(x)
1 0.10
2 0.20
3 0.45
4 0.25
Solution:
x P(x) xP(x)

1 0.10 0.10

2 0.20 0.40

3 0.45 1.35

4 0.25 1.00
So E(x)=2.85
Example 5 A security guard recorded the number of people
entering the bank every hour during one working day. The
random variable X represents the number of people who
entered the bank. The probability distribution of X is shown
below.
What is the expected number of people who enters the bank
every hour?

x P(x)
0 0
1 0.1
2 0.2
3 0.4
4 0.2
5 0.1
Solution:
x P(x) xP(x)

0 0 0.0

1 0.1 0.1

2 0.2 0.4

3 0.4 1.2

4 0.2 0.8

5 0.1 0.5

Therefore, the average number of people entering


the bank every hour during that working day is
three.
Variance and Standard Deviation
of the Discrete Random Variable

The variance and standard deviation describe the


amount of spread, dispersion, or variability of the
items in a distribution.
Variance and Standard Deviation of a Random
Variable
The variance and standard deviation are two values that
describe how scattered or spread out the scores are from
the mean value of the random variable.
The variance of a random variable X is
denoted by It can likewise be written as
Var(X). The variance of random variable is
the expected value of the square of the
difference between the assumed value of
random variable and the mean. The
variance of X is:

where:
x=outcome = population mean
P(x)=probability of the outcome
σ2 - variance σ – standard deviation
The larger the value of the variance, the farther are
the values of X from the mean. The variance is
tricky to interpret since it uses the square of the
unit of the measure of X. So, it is easier to
interpret the value of the standard deviation
because it uses the same unit of measure of X.
The standard deviation of a discrete random
variable X is written as It is the square root of
the variance. The standard deviation is computed
as:
Let’s have examples:

1. The number of cars sold per day at a local car dealership, along
with its corresponding probabilities, is shown in the succeeding
table. Compute the variance and the standard deviation of the
probability distribution by following the given steps. Write your
answer in your answer sheets.
Number of Cars Sold X Probability P(x)
0 10%
1 20%
2 30%
3 20%
4 20%
In solving the problem, let’s follow the steps below.

STEPS IN FINDING THE VARIANCE AND STANDARD


DEVIATION
1. Find the mean of the probability distribution.
2. Subtract the mean from each value of the random variable
X.
3. Square the result obtained in Step 2.
4. Multiply the results obtained in Step 3 by the corresponding
probability.
5. Get the sum of the results obtained in Step 4. Results
obtained is the value of the variance of probability
distribution.
Now let’s solve
the problem.
Continuation
To Solve for Standard Deviation:

Get the square root of the variance


σ2 = ∑( x− µ)2p(x)
= 1.56

σ = √1.56

= 1.25
So, the variance of the number of cars sold per day is
1.56 and the standard deviation is 1.25.
2. When three coins are tossed once, the probability distribution for the random variable X
representing the number of heads that occur is given below. Compute the variance and standard
deviation of the probability distribution.

Solution:
Follow the steps in finding variance and standard deviation of the
probability distribution.
To solve for Standard Deviation

σ2 = ∑(x − µ)2p(x)
= 0.74

σ = √0.74

= 0.86
The mean in tossing 3 coins with probability of Head
will show up is 0.86 and the variance is 0.74, then the
standard deviation is 0.86.
Seatwork:
1. Determine the variance and the standard deviation
of the following probability mass function.
x P(x)
1 0.15
2 0.25
3 0.30
4 0.15
5 0.10
6 0.05

1. Find the expected value.


2. Subtract the expected value from each outcome. Square each
difference.
3. Multiply each squared difference by the corresponding
probability.
4. Sum up all the figures obtained in Step3.
Solution:
x P(x) xP(x)
1 0.15
2 0.25
3 0.30
4 0.15
5 0.10
6 0.05
Solution:
x P(x) xP(x)
1 0.15 0.15 -1.95 3.8025 0.570375
2 0.25 0.5 -0.95 0.9025 0.225625
3 0.30 0.9 0.05 0.0025 0.00075
4 0.15 0.6 1.05 1.1025 0.165375
5 0.10 0.5 2.05 4.2025 0.42025
6 0.05 0.3 3.05 9.3025 0.465125
2. Determine the variance and the standard
deviation of the following mass function.

x P(x)
0 0.1
1 0.2
2 0.3
3 0.3
4 0.1
Solution:
x P(x) xP(x)
0 0.1
1 0.2
2 0.3
3 0.3
4 0.1
Solution:
x P(x) xP(x)
0 0.1 0 -2.1 4.41 0.441
1 0.2 0.2 -1.1 1.21 0.242
2 0.3 0.6 -0.1 0.01 0.003
3 0.3 0.9 0.9 0.81 0.243
4 0.1 0.4 1.9 3.61 0.361
3. A discrete random variable X has the
probability distribution.
x P(x)
0 0.12
1 0.25
2 0.18
3 0.35
4 0.10

Find the variance and the standard deviation


of X.
Solution:
x P(x) xP(x)
0 0.12
1 0.25
2 0.18
3 0.35
4 0.10
Solution:
x P(x) xP(x)
0 0.12 0 -2.06 4.2436 0.509232
1 0.25 0.25 -1.06 1.1236 0.2809
2 0.18 0.36 -0.06 0.0036 0.000648
3 0.35 1.05 0.94 0.8836 0.30926
4 0.10 0.4 1.94 3.7636 0.37636

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