Module II Probability Distribution
Module II Probability Distribution
DISTRIBUTIONS
Random Variable
•A random variable x takes on a defined set of
values with different probabilities.
•For example, if you roll a die, the outcome is
random (not fixed) and there are 6 possible
outcomes, each of which occur with probability
one-sixth.
•For example, if you poll people about their voting
preferences, the percentage of the sample that
responds “Yes on Proposition 100” is a also a
random variable (the percentage will be slightly
differently every time you poll).
Random Variables
• A variable is random if it takes on different
values as a result of the outcomes of a random
experiment
• Random variable can be either discrete or
continuous
• If a random variable is allowed to take on only a
limited number of values, which can be listed, it
is a discrete random variable
• If it is allowed to assume any value within a
given range, it is a continuous random variable
• Identify the random variable.
• Assign probability to each value of the random variable.
● Subjective probability technique
● A priori probability assignment
● Empirical probability assignment
Expected Value
• Fundamental idea in the study of probability
distribution
• To get the Expected value: multiply each value that
the random variable can assume by the probability of
occurrence of that value and then sum these
products.
Example
A dealer in refrigerator estimates from his past experience that
the probabilities of his selling refrigerators in a day are:
# Refrigerators sold 0 1 2 3 4 5 6
Probability 0.03 0.20 0.23 0.25 0.12 0.1 0.07
p(x)
1/6
x
1 2 3 4 5 6
Probability mass function
(pmf)
x p(x)
1 p(x=1)=1/6
2 p(x=2)=1/6
3 p(x=3)=1/6
4 p(x=4)=1/6
5 p(x=5)=1/6
6 p(x=6)=1/6
1.0
Cumulative distribution
function (CDF)
1.0 P(x)
5/6
2/3
1/2
1/3
1/6
1 2 3 4 5 6 x
Cumulative distribution
function
x P(x≤A)
1 P(x≤1)=1/6
2 P(x≤2)=2/6
3 P(x≤3)=3/6
4 P(x≤4)=4/6
5 P(x≤5)=5/6
6 P(x≤6)=6/6
Examples
1. What’s the probability that you roll a 3 or less?
P(x≤3)=1/2
12 .25
1.0
Answer (b)
b. f(x)= (3-x)/2 for x=1,2,3,4
x f(x)
Though this sums to 1,
1 (3-1)/2=1.0 you can’t have a negative
probability; therefore, it’s
2 (3-2)/2=.5 not a probability
function.
3 (3-3)/2=0
4 (3-4)/2=-.5
Answer (c)
c. f(x)= (x2+x+1)/25 for x=0,1,2,3
x f(x)
0 1/25
1 3/25
Doesn’t sum to 1. Thus,
2 7/25 it’s not a probability
function.
3 13/25
24/25
Practice Problem:
• The number of ships to arrive at a harbor on any given
day is a random variable represented by x. The
probability distribution for x is:
x 10 11 12 13 14
P(x) .4 .2 .2 .1 .1
p(x)=e-x
p(x)=e-x
x
1 2
Cumulative distribution function
As in the discrete case, we can specify the “cumulative
distribution function” (CDF):
2 x
Example 2: Uniform distribution
The uniform distribution: all values are equally likely
x
1
p(x)
¼ ½ x
1
P(½ ≥x≥ ¼ )= ¼
Probability Distribution Table/
Probability Distribution Function
Two Coins No. of Heads Probability
HH
HT 0 1/4
TH 1 1/2
TT 2 1/4
Types of Probability
Distribution
• Discrete Probability Distribution
● Can take only limited number of values, which
can be listed
● Example: probability that you are born in a given
month (only 12 possible ways)
• Continuous Probability Distribution
● The variable under consideration can take any
value within a given range, we cannot list all the
possible values
● Continuous distributions are convenient ways to
represent discrete distributions that have many
possible outcomes, all very close to each other
Binomial Distribution
• One widely used probability of a discrete random
variable
• Binomial distribution describes discrete, not
continuous, data, resulting from an experiment
known as a Bernoulli process
●The tossing of a coin fixed number of times is a
Bernoulli process
Bernoulli Process
• Example: Toss a fair coin a fixed number of times
1. Each trial has only two possible outcomes: Tail or Head,
Yes or No, Success or Failure- Dichotomy
2. The probability of the outcome of any trail remains fixed
over time- Stability
3. The trials are statistically independent- Independence
Binomial Formula
•
•
Example
• There are a total of 12 bulbs. The probability of a
faulty bulb is 0.35. Find the probability of 4 faulty
bulbs.
P(4) = 12 C4 (0.35)4 (0.65)8 = 0.2366
Probability Distribution Function
Faulty bulbs Probability
0 0.0056
1 0.036
2 0.108
:
12
P(<3 Faulty Bulbs) = P(0) +P(1)+P(2)
= 0.1496
P (≥ 3 Faulty Bulbs) = 1 ─ P(<3)
= 1 ─ 0.1496 = 0.8504
• In binomial distribution
Expected Value = np
Variance =npq
Example
A customer purchasing something from you (the
moment of truth, not just browsing). It can be how
many visitors you get on your website a day, how
many clicks your ads get for the next month, how
many phone calls you get during your shift, or even
how many people will die from a fatal disease next
year, etc.
Insta Likes!
This is a classic job for the binomial distribution, since we are calculating the
probability of the number of successful events (likes).
However, here we are given only one piece of information — 17 ppl/week, which is a
“rate” (the average # of successes per week, or the expected value of x). We don’t
know anything about the probability p, nor the number of visitors n.
Therefore, we need a little more information to tackle this problem. What more do
we need to frame this probability as a binomial problem? We need two things: the
probability of success (claps) p & the number of trials (visitors) n.
The shortcomings of the Binomial
Distribution
1. A binomial random variable is “BI-nary” — 0 or 1.
2. In the Binomial distribution, the # of trials (n)
should be known beforehand.
Characteristics of Processes that Produce
Poisson Probability Distribution
Taking an example of the number of vehicles
passing through a single toll booth at a rush hour
1. The average number of vehicles that arrive per
rush hour can be estimated from the past
traffic data
2. If we divide the rush hour into periods of one
second each, we can see that
a) The probability that exactly one vehicle will
arrive at the single tollbooth per second is a very
small number and is constant for every one
second interval
b) The probability that two or more vehicle will
arrive within a one second interval is so small
that we can assign a zero value
c) The number of vehicles that arrive in a given
one second interval is independent of the
time at which that one second interval occurs
during the rush hour
d) The number of arrivals in any one-second
interval is not dependent on the number of
arrivals in any other one-second interval
Poisson Formula
•
• Past police records indicate a mean of five
accidents per month at a particular intersection.
Calculate Probability of
a)No accidents
b)Exactly one accident
c) Exactly two accidents
d)Exactly three accidents
e)Probability of 0, 1, or 2 accidents
•
Example
A certain product manufactured has 2 defects per unit of products
inspected. Calculate the probabilities of finding a product
1. without any defect,
2. with 3 defects and
3. with four defects.
Solution
P(x) = (e– λ λx)/x!
λ = 2 per unit
x = 0, 3, 4
P(0) = (e–2 20)/0! = 0.135
P(3) = (e–2 23)/3! = 0.1808
P(4) = (e–2 24)/4! = 0.0902
Even though the Poisson distribution models rare
events, the rate λ can be any number. It doesn’t
always have to be small.
The Poisson Distribution is asymmetric — it is always
skewed toward the right. Because it is inhibited by the
zero occurrence barrier (there is no such thing as
“minus one” clap) on the left and it is unlimited on the
other side.
As λ becomes bigger, the graph looks more like a
normal distribution.
When the number of the event is high but the
probability of its occurrence is quite low, poisson
distribution is applied. As for example, Number of
insurance claims/day on an insurance company.
Example
In a cafe, the customer arrives at a mean rate of 2 per min. Find
the probability of arrival of 5 customers in 1 minute using the
Poisson distribution formula.
Solution
Given: λ = 2, and x = 5.
Using the Poisson distribution formula:
P(X = x) = (e-λ λx )/x!
P(X = 5) = (e-2 25 )/5!
BASIS FOR COMPARISON BINOMIAL DISTRIBUTION POISSON DISTRIBUTION
Outcomes Only two possible outcomes, i.e. Unlimited number of possible outcomes.
success or failure.