STA111
STA111
1 Random Variable
Random variable is a variable that takes on different valuesdetermined by chance.
For a given sample space S of some experiment, a random variable (rv) is any rule that
associates a number with each outcome in a sample space S. In mathematical language, a
random variable is a function whose domain is the sample space and whose range is the set of
real numbers.
There are two types of random variables, qualitative (or categorical) and quantitative
I Qualitative Random Variable: The possible values of a qualitative random variable vary
in kind but not in numerical degree. They are also called categorical variables. Examples
of categorical variables are race, sex, age group, and educational level.
(a) Discrete Random Variable When the random variable can assume only a countable,
sometimes infinite, number of values.
(b) Continuous Random Variable When the random variable can assume uncountable
number of values in a line interval. It is a set of possible values that consists
either of all numbers in a single interval on the number line (possibly infinite in
extent, e.g., from (− inf to + inf) or all numbers in a disjoint union of such intervals
(e.g.,[0, 10] ∪ [20, 30]).
Can you identify which example above is either a qualitative or quantitative random variable?
2 Sample Space
An experiment is any activity or process whose outcome is subject to uncertainty. Probabilities
arise when one considers and weighs possible results of some experiment.
The sample space of an experiment, denoted by S, is the set of all possible outcomes of
that experiment. Some results are more likely than others. An experiment may be as simple
as a coin toss, or as complex as starting a new business.
Example 1. An example of such an experiment is checking the gender of a class. The sample
space for this experiment can be abbreviated as S = F, M , where F refers to female and M
refers to male. d
Example 2. An experiment consists of flipping a coin and then flipping it a second time if
a head occurs. If a tail occurs on the first flip, then a die is tossed once. To list the elements
of the sample space providing the most information, we construct the tree diagram of Figure
1. The various paths along the branches of the tree give the distinct sample points. Starting
with the top left branch and moving to the right along the first path, we get the sample point
HH, indicating the possibility that heads occurs on two successive flips of the coin. Likewise,
the sample point T3 indicates the possibility that the coin will show a tail followed by a 3 on
the toss of the die. By proceeding along all paths, we see that the sample space is
S = HH, HT, T 1, T 2, T 3, T 4, T 5, T 6.
Example 3. If we examine three different classes sequentially, and document the result of
each examination, then an outcome of the whole experiment is any sequence of F’s and M’s of
length 3, so
S = {F F F, F F M, F M F, F M M, M F F, M F M, M M F, M M M }.
3 Events
While conducting an experiment, we may want to know the occurrence of not only individual
outcomes of S but also in various occurrences in the sample space. An event is a subset
(collection) of outcomes contained in a sample space. A simple event contains only one
outcome while a compound event consists of more one outcome.
4 Probability
The Probability of an event is a likelihood of the occurrence of an event resulting from such
a statistical experiment. P (A) is evaluated by a set of real numbers ranging from 0 to 1. To
every point in the sample space we assign a probability such that the sum of all probabilities
is 1. To find the probability of an event A, we sum all the probabilities assigned to the sample
points in A. This sum is called the probability of A and is denoted by P (A). The probability
P (A) of an event A is the sum of the weights of all sample points in A. Therefore
For any event A
P (A) ≥ 0
,
P (S) = 1
P (A1 ∪ A2 ∪ A3 , ∪ . . . )
P (∅)
Example 1. A coin is tossed twice. What is the probability that at least 1 head occurs?
S = HH, HT, T H, T T
(b) Since 18 of the 53 students are information technology or cyber security majors, it follows
that
18
P (I ∪ CY ) =
53
P (A ∪ B) = P (A) + P (B) − P (A ∩ B)
P (A ∪ B) = P (A) + P (B)
Also, Note first that A ∪ B can be decomposed into two disjoint events, A and B ∩ A′ . Fur-
thermore, B itself is the union of the two disjoint events A ∩ B and ′ A ∩ B. So
P (B) = P (A ∩ B) + P (A′ ∩ B)
Example 4. What is the probability of getting a total of 7 or 11 when a pair of fair dice is
tossed?
Solution: Let A be the event that 7 occurs and B the event that 11 comes up. Now, a total of
7 occurs for 6 of the 36 sample points, and a total of 11 occurs for only 2 of the sample points.
Since all sample points are equally likely, we have P (A) = 1/6 and P (B) = 1/18. The events
A and B are mutually exclusive, since a total of 7 and 11 cannot both occur on the same toss.
Therefore,
1 1
P (A ∪ B) = P (A) + P (B) = +
6 18
This result could also have been obtained by counting the total number of points for the
event A ∪ B, namely 8, and writing
n 8 2
P (A ∪ B) = = =
N 36 9
.
Example 5. In a certain residential area, 60% of all households get Internet service from
MTN, 80% get television service from that company, and 50% get both services from the same
company. If a household is randomly selected, (a)what is the probability that it gets at least
one of these two services from MTN, and (b)what is the probability that it gets exactly one of
these services from the company?
(b) (i) P(subscribes to only TV services ) = [(not Internet and TV)] But we know that
P (A ∪ B) = P (A) + P (A′ ∩ B)
=
0.9 = 0.6 + P (A′ ∩ B)
So
P (A′ ∩ B)0.9 − 0.6 = 0.3
P (A ∩ B ′ ) = P (A ∪ B) − P (B) = 0.1
5 Exercises
Sample Space
Solution:
2. Two jurors are selected from 4 alternates to serve at a murder trial. Using the notation
A1A3 for example, to denote the simple event that alternates 1 and 3 are selected, list the
6 elements of the sample space S.
Solution:
Solution:
4. If S = 0, 1, 2, 3, 4, 5, 6, 7, 8, 9 and A = 0, 2, 4, 6, 8, B = 1, 3, 5, 7, 9, C = 2, 3, 4, 5, and D =
1, 6, 7, list the elements of the sets corresponding to the following events:
(a) A ∪ C;
(b) A ∩ B;
(c) C ′ ;
(d) (C ∩ D) ∪ B;
(e) (S ∩ C)′ ;
(f) (A ∩ C ∩ D′ ).
5. If S = x|0 < x < 12, M = x|1 < x < 9, and N = x|0 < x < 5, find
(a) M ∪ N ;
(b) M ∩ N ;
(c) M ′ ∩ N ′ ;
6. Suppose that vehicles taking a particular free way exit can turn right (R), left (L), or go
straight (S). Consider observing the direction for each of three successive vehicles.
(a) List all outcomes in the event A that all three vehicles go in the same direction.
(b) List all outcomes in the event B that all three vehicles take different directions.
(c) List all outcomes in the event C that exactly two of the vehicles turn right.
(d) List all outcomes in the event D that exactly two of the vehicles go in the same
direction.
(e) List all outcomes in D′ , C ∪ D, and C ∩ D.
6 Probability Distribution
In Probability Distribution, A Random Variable’s outcome is uncertain. Here, the outcome’s
observation is known as Realization. It is a Function that maps Sample Space into a Real
number space, known as State Space. They can be Discrete or Continuous. Probability
Distribution is basically the set of all possible outcomes of any random experiment or event.
III P (X = x) = f (x)
Example 1. We draw two cards successively with replacement from a well-shuffled deck of
52 cards. Find the probability distribution of finding aces.
Solution: Let’s define a random variable “X”, which means number of aces. So since we are
only drawing two cards from the deck, X can only take three values: 0, 1 and 2. We also
know that, we are drawing cards with replacement which means that the two draws can be
considered as an independent experiments.
P(X=0) = P(both cards are non-aces)
=P(non-ace) × P(non-ace)
48 48
= 52 × 52
144
= 159
P(X=1) =P(one of the cards in ace) = P(non-ace and then ace)+P(ace and then non-ace)
=P(non-ace) × P(ace) + P(ace) × P(non-ace)
48 4 4 48 24
= 52
× 52
+ 52
× 52
= 169
Now we have probabilities for each value of random variable. Since it is discrete, we can
make a table to represent this distribution. The table is given below.
x 0 1 2
144 24 1
p(X = x) 169 169 169
Example 2. The computer science department has a lab with six computers reserved for
level 100 students. Let X be the number of these computers that are in use a particular time
of the day. Suppose that the probability distribution of X is given in the following table; the
first row of the table lists the possible X values and the second row gives the probability of
each such value.
x 0 1 2 3 4 5 6
p(x) 0.05 0.10 0.15 0.25 0.20 0.15 0.10
Since the event that at least 3 computers are in use is complementary to at most 2 computers
are in use,
P (X ≥ 3) = 1 − P (X ≤ 2) = 1 − 0.30 = 0.70.
which can of course also be obtained by adding together probabilities for the values, 3, 4, 5,
and 6. the probability that between 2 and 5 computers inclusive are in use is
Example 3. A shipment of 20 similar laptop computers to a retail outlet contains 3 that are
defective. If a school makes a random purchase of 2 of these computers, find the probability
distribution for the number of defectives.
Solution:
Let X be a random variable whose values xare the possible numbers of defective computers
purchased by the school. Then x can only take the numbers 0, 1, and 2 now. Then
3 17 3 17 3 17
68 51 3
f (0) = P (X = 0) = 0 202 = , P (X = 1) = 1 201 = , P (X = 2) = 2 200 =
2
95 2
190 2
190
x 0 1 2
68 51 3
f (x)
95 190 190
Example 2. If a car agency sells 50% of its inventory of a certain foreign car equipped with
side airbags, find the formula for the probability distribution function of the number of cars
with side airbags among the next 4 cars sold by the agency.
Solution: Since the probability of selling an automobile with side airbags is 0.5, the 24 = 16
points in the sample space are equally likely to occur. Therefore, the denominator for all
probabilities, and also for our function, is 16. To obtain the number of ways of selling 3 cars
with side airbags, we need to consider the number of ways of partitioning 4 outcomes into two
cells, with 3 cars with side airbags assigned to one cell and the model without side airbags
assigned to the other. This can be done in 43 = 4 ways.
In general, the event of selling x models with side airbags and 4 − x models without side
airbags can occur in x4 where where x can be 0, 1, 2, 3, or 4. Thus the probability distribution
1 4
f (x) =
16 x
, for x = 0, 1, 2, 3, 4.
x 0 1 2 3 4 5 6 7 8 9 10
p(x) 0.002 0.001 0.002 0.005 0.02 0.04 0.18 0.37 0.25 0.12 0.01
Then the mean value of X is
x p(x)
1 p
0 1−p
or equivalently
f (k; p) = pk (1 − p)1−k for k ∈ {0, 1}
If P (1) = p is the probability of a success, then P (0) = q = 1 − p is the probability of a
failure.
So let X = 1 if a randomly selected student passes a test and X = 0 otherwise. Then X is
a Bernoulli rv with pmf p(1) = p and p(0) = 1 − p, from which E(X) = 0 · p(0) + 1 · p(1) =
0(1 − p) + 1(p) = p. That is, the expected value of X is just the probability that X takes on
the value 1.
So,
p(1 − p)x−1 x = 1, 2, 3, . . .
p(x) = (3)
0 otherwise
We can then compute the expectation and variance as
X
E(X) = P (x) = (0)(1 − p) + (1)(p) = p
x
X
V ar(X) = (x − p)2 P (x) = (0 − p)2 (1 − p) + (1 − p)2 p
x
x p(x)
1 0.5
0 0.5
x p(x)
1 0.6
0 0.4
Consider the set of Bernoulli trials where three items are selected at random from a man-
ufacturing process, inspected, and classified as defective or non-defective. A defective item is
designated a success. The number of successes is a random variable X assuming integral values
from 0 through 3. The eight possible outcomes and the corresponding values of X are
1 9
P (X = 2) = F (2) = b(2; 3, ) =
4 64
A Bernoulli trial can result in a success with probability p and a failure with probability
q = 1 − p. Then the probability distribution of the binomial random variable X, the number
of successes inn independent trials, is
n x n−x
b(x; n, p) = p q , x = 0, 1, 2, ..., n.
x
Example 1. Observation over a long period of time has shown that a particular sales man
cam a sale on a single contact withe probability of 20%. Suppose the same person contacts
four prospects, answer the following questions.
(a) What is the probability that exactly 2 prospects purchase the product?
(b) What is the probability that at least 2 prospects purchase the product?
(c) What is the probability that all prospects purchase the product?
(d) What is the expected value of the prospects that would purchase the product?
Example 2. The probability that a certain kind of component will survive a shock test is
3/4. Find the probability that exactly 2 of the next 4 components tested survive?
Example 3. The probability that a patient recovers from a rare blood disease is 0.4. If 15
people are known to have contracted this disease, what is the probability that
(a) at least 10 survive,
Solution:
P9
(a) P (X ≥ 10) = 1 − P (X < 10) = 1 − x=0 b(x; 15, 0.4) = 1 − 0.9662 = 0.0338
P8
(b) P (3 ≤ X ≤ 8) = x=3 b(x; 15, 0.4) = b(3; 15, 0.4)+b(4; 15, 0.4)+b(5; 15, 0.4)+b(6; 15, 0.4)+
b(7; 15, 0.4) + b(8; 15, 0.4)
(c)
(c) What is the variance of the investors who would have invested in high-tech stocks?
Solution:
(a) P (X = 4) = b(4; 10, 0.4)
P7
(b) P (X ≤ 7) = x=0 b(x; 10, 0.4) = b(0; 10, 0.4) + b(1; 10, 0.4) + b(2; 10, 0.4) + b(3; 10, 0.4) +
b(4; 10, 0.4) + b(5; 10, 0.4) + b(6; 10, 0.4 + b(7; 10, 0.4 For the last question, we can also
use the complement to simplify the calculation: P (X ≤ 7) = 1 − P (X ≥ 8) = 1 −
P9
x=8 b(x; 10, 0.4) = 1 − (b(8; 10, 0.4) + b(9; 10, 0.4))
(c)
(d)
Example 5. Compute the following binomial probabilities directly from the formula for
b(x; n, p)
Example 6. An exciting computer game is released. Sixty percent of players complete all
the levels. Thirty percent of them will then buy an advanced version of the game. Among 15
users, what is the expected number of people who will buy the advanced version? What is the
probability that at least two people will buy it?
Solution: Let x be the number of people (successes), among the mentioned 15 users (trials),
who will buy the advanced version of the game. It has Binomial distribution with n = 15 trials
and the probability of success
p = P{buy advanced}
= P{buy advanced—complete all levels}P{complete all levels}
= (0.30)(0.60)= 0.18
Then we have
E(X) = np = (15)(0.8) = 2.7
and
P {X ≥ 2} = 1 − P (0) − P (1) = 1 − (1 − p)n − np(1 − p)n−1 = 0.7813
Example 7. Determine if the following situations suggest a random variable with a binomial
distribution:
I The number of questions correct if one randomly guesses on a quiz of 20 multiple choice
questions where each question has 4 possible answers
II The number of people with blue eyes in a group of 10 people drawn from a room of 30
people without replacement.
III The number of bird chirps one can hear in a day if the average number of chirps per hour
is 15.
VI The number of rolls of two dice that result in a prime total if the dice are rolled 50 times.
Solution:
II No. The ”trials” (the people drawn from the room and tested if they have blue eyes
or not) are not independent. As people with blue eyes are drawn from the room, the
probability the next person drawn from the room has blue eyes decreases
III No. There is no upper limit on how many chirps one could hear. In a binomial situation,
the maximum number of successes is limited by the fixed number of trials.
V No. There are more than two outcomes. If one species could be the ”success” and another
be ”failure”, what would the third species be?
Example 8. For each random variable below that follows a binomial distribution corre-
sponding to the given number of trials n, and probability of success p, find the probability of
seeing x successes.
Solution:
In each, use P (x) = (nCx)px q n−x , yielding (approximately):
I 0.2323
II 0.2162
III 0.1821
IV 0.00002927
Example 10. Find the mean and standard deviation of a random variable following a
binomial distribution corresponding to 50 trials each with a probability of success equal to 0.2.
12 Geometric Distribution
Again, consider a sequence of independent Bernoulli trials. Each trial results in a “success” or
a “failure.”
The number of Bernoulli trials needed to get the first success has Geometric distribution.
Consider a Bernoulli experiment, that is, a random experiment having two possible out-
comes: either success or failure.
We repeat the experiment until we get the first success, and then we count the number X
of failures that we faced prior to recording the success.
Since the experiments are random, X is a random variable.
If the repetitions of the experiment are independent of each other, then the distribution of
X, is called geometric distribution.
Example 1. If we toss a coin until we obtain head, the number of tails before the first head
has a geometric distribution.
Example 2.
I A search engine goes through a list of sites looking for a given key phrase. Suppose the
search terminates as soon as the key phrase is found. The number of sites visited is
Geometric.
II A hiring manager interviews candidates, one by one, to fill a vacancy. The number of
candidates interviewed until one candidate receives an offer has Geometric distribution.
P (x) = P {the 1st success occurs on the x-the trial} = (1 − p)x−1 p, x = 1, 2, ...
which is the probability of (x − 1) failures followed by one success. Here, there is no number
of combinations in this formula because only one outcome has the first success coming on the
x − th trial.
This is the first time we see an unbounded random variable, that is, with no upper bound.
Variable X can take any positive integer value, from 1 to ∞. It is insightful to check whether
P
x P (x) = 1, as it should hold for all pmf. Indeed,
∞
X X (1 − 0)0
P (x) = (1 − p)x−1 p = p=1
x x=1
1 − (1 − p)
, where we noticed that the sum on the left is a geometric series that gave its name to Geometric
distribution.
Finally, Geometric distribution has expectation µ = 1/p and variance σ 2 = (1 − p)/p2 . For
Geometric distribution, we can say
p = Probability of success
P(x) = (1 − p)x−1 p, x = 1, 2, ....
1 1−p
E(X) = p
V ar(X) = p2
Example 3. In order to calculate the probability of a person rolling a 3 on the fifth roll (and
not earlier) of a standard six-sided die, n = 5 (the fifth roll) and p = 1/6 (the probability of
getting each number on a six-sided die). Therefore:
The probability of rolling a 3 on the fifth roll (and not before that) of a six-sided die is thus
0.08038. The expected value in this case is 6, which means that a person can be expected to
roll a 3 on the sixth roll using the die:
E(X) = 1/1/6 = 6
E(Y ) = (1 − 1/6)/1/6 = 5
The geometric distribution is similar to the binomial distribution in that each trial can have
only two outcomes: success or failure, with the probability of success being the same across
trials.
But, the geometric distribution is concerned with only the first instance of success, whereas
the binomial distribution seeks to determine the total number of successes over a fixed set of
trials.
Example 4. On each day we play a lottery in which the probability of winning is 1%.
What is the expected value of the number of days that will elapse before we win for the
first time?
Solution: Each time we play the lottery, the outcome is a Bernoulli random variable (equal
to 1 if we win), with parameter p = 0.01. Therefore, the number of days before winning is a
geometric random variable with parameter p = 0.01. Its expected value is
[1 − p] 0.99
= = 99
p 0.01
Example 5. A fair coin is tossed. a) What is the probability of getting a tail at the 5th
toss?
b) Find the mean µ and standard deviation σ of the distribution? c) Use excel or google sheets
to plot the probabilities from x = 1 to x = 10.
Solution:
a)
Let ”getting a tail” be a ”success”. For a fair coin, the probability of getting a tail is
p = 1/2
and ”not getting a tail” (failure) is −p = 1 − 1/2 = 1/2
b)
µ = 1/0.5
q = 2q
1−p 2 0.5 2
σ= p
= 0.5
= 1.41
c)
The distribution of the geometric probability distribution for p = 0.5
Example 6. In a large population of adults, 45% have a post secondary degree. If people
are selected at random from this population,
a) what is the probability that the third person selected is the first one that has a post
secondary degree?
b) what is the probability that the first person with a post secondary degree is randomly
selected on or before the 4th selection?
Solution: a) Let ”having post secondary degree” be a ”success”. If a person from this popula-
tion is selected at random, the probability of ”having post secondary degree” is p = 45% = 0.45
and ”not having post secondary degree” (failure) is 1 − p = 1 − 0.45 = 0.55
Selecting a person from a large population is a trial and these trials may be assumed to be
independent. This is a geometric probability problem. Hence
b) On or before the 4th is selected means either the first, second, third or fourth person.
The probability may be written as
P (X ≤ 4) = P (X = 1) + P (X = 2) + P (X = 3) + P (X = 4)
P (X = x) = (1 − 0.45)x−1 0.45
to write
Example 7. If your probability of success is 0.2, what is the probability you meet an
independent voter on your third try?
Solution: Inserting 0.2 as p and with X = 3, the geometric probability density function be-
comes:
f (x) = (1 − p)x − 1 ∗ p
P (X = 3) = (1 − 0.2)3−1 (0.2)
Solution: a) To find the desired probability, we need to find P (X = 4), which can be deter-
mined readily using the p.m.f. of a geometric random variable with p = 0.20, 1 − p = 0.80,
and x = 4
There is about a 10% chance that the marketing representative would have to select 4
people before he would find one who attended the last home football game.
There is about a 26% chance that the marketing representative would have to select more
than 6 people before he would find one who attended the last home football game.
c) The average number is:
That is, we should expect the marketing representative to have to select 5 people before
he finds one who attended the last football game. Of course, on any given try, it may take 1
person or it may take 10, but 5 is the average number. The variance is 20, as determined by:
1−p 0.80 2
σ 2 = V ar(X) = = = 0.20
p2 0.20
13 Hypergeometric Distribution
Hypergeometric distribution is a probability distribution that models the number of
successes in a random sample drawn without replacement from a finite population. Some
examples of hypergeometric distribution are:
Drawing cards from a deck and counting the number of red cards or aces.
Sampling fish from a pond and counting the number of tagged fish.
Selecting candies from a jar and counting the number of red candies.
The hypergeometric distribution differs from the binomial distribution in the lack of replace-
ments. Thus, it often is employed in random sampling for statistical quality control. A simple
everyday example would be the random selection of members for a team from a population of
girls and boys.
Hypergeometric distribution plays a vital role in statistics and probability theory as it helps
make selections from two groups without replacing the members of those groups. To see how
to calculate it, let us follow the below steps:
1. Firstly, determine the total number of items in the population, which is denoted by N.
For example, the number of playing cards in a deck is 52.
2. Next, determine the number of items in the sample, denoted by n—for example, the number
The mean of the hypergeometric distribution is nk/N , and the variance (square of the
standard deviation) is nk(N − k)(N − n)/N 2 (N − 1).
Example 1. Let us take the example of an ordinary deck of playing cards from where 6
cards are drawn randomly without replacement. First, determine the probability of drawing
exactly 4 red suit cards, i.e., diamonds or hearts.
K = 26 (since there are 13 red cards each in diamonds and hearts suit)
Solution: Therefore, the calculation of the probability of drawing exactly 4 red suits cards in
the draw 6 cards using the above formula is as follows:
Probability
k N −k
x n−x
= P (X = x) = N
n
Therefore, there is a 23.87% probability of drawing exactly 4 red cards while drawing 6
random cards from an ordinary deck.
Example 2. Let us take another example of a wallet that contains 5 $100 bills and 7 $1 bills.
If 4 bills are chosen randomly, then determine the probability of choosing exactly 3 $100 bills.
Solution: Therefore, the calculation of the probability of choosing exactly 3 $100 bills in the
randomly chosen 4 bills using the above formula is as follows:
5 (12–5) 5
7
3 (4–3) 3 (1) 10 ∗ 7
12
= 12
=
4 4
495
II You are concerned with a group of interest, called the first group.
III You sample without replacement from the combined groups. For example, you want to
choose a softball team from a combined group of 11 men and 13 women. The team
consists of ten players.
IV Each pick is not independent, since sampling is without replacement. In the softball
13
example, the probability of picking a woman first is 24
. The probability of picking a man
11 10
second is 23
if a woman was picked first. It is 23
if a man was picked first. The probability
of the second pick depends on what happened in the first pick. You are not dealing with
Bernoulli Trials. The outcomes of a hypergeometric experiment fit a hypergeometric
probability distribution.
The random variable X = the number of items from the group of interest.
14 Poisson Distribution
What is a Poisson Trial?
A Poisson trial is a collection of Bernoulli trials with unequal probabilities. In other words,
one Poisson trial is exactly the same as one Bernoulli trial. However, when you have many of
them with different probabilities, they are called Poisson trials.
A binomial trial is an experiment with two outcomes, success or failure. A “success” is
the result you’re looking for. For example, it could be a “yes” on a questionnaire, a perfect
hammer from a factory floor, or a plant that flowers (as opposed to one that doesn’t). In
real life, it’s common for these success/failure situations to have unequal probabilities. For
example, different lines on a factory floor may have small probability differences in the number
of faulty widgets each line produces. Analysis of road accidents often involves Poisson trials,
as probabilities change with each instance of travel. When these probabilities are unequal for
each Bernoulli trial of independent events, it becomes a Poisson trial.
(e−µ × µx )
X ∼ P (µ) = P (x; µ) =
x!
Where:
The symbol ”!” is a factorial.
µ (the expected number of occurrences) is sometimes written as λ. Sometimes called the event
rate or rate parameter. The Mean of X ∼ P (µ)µ
The variance of X ∼ P (µ) = µ
√
Standard Deviation of X ∼ P (µ) = + µ
Example 1.
The average number of major storms in your city is 2 per year. What is the probability
that exactly 3 storms will hit your city next year?
Solution:
I Step 1: Figure out the components you need to put into the equation.
II Step 2: Plug the values from Step 1 into the Poisson distribution formula:
(e−µ × µx )
P (x; µ) =
x!
(2.71828–2 )(23 )
=
3!
= (0.13534) (8) / 6
= 0.180
Solution:
I Step 1: Figure out the components you need to put into the equation.
II Step 2: Plug the values from Step 1 into the Poisson distribution formula:
(e−µ × µx )
P (x; µ) =
x!
(2.71828 )(710 )
–7
=
10!
=
= 0.07098 or 7.098%
Example 3. The number of industrial injuries per working week in a particular factory is
known to follow a Poisson distribution with mean 0.5. Find the probability that
Solution:
(a) Let x be the number of accidents in one week. So X ∼ P (0.5)
(a) P (X < 2) = P (X = 0) + P (X = 1)
(b) 1 − P (X ≤ 2) = P (X > 2) = 1 − [P (X = 0) + P (X = 1) + P (X = 2)]
I The possibility of success in a specific time frame is independent of its earlier occurrence.
II The variables or the number of occurrences should be in whole numbers, i.e., countable.
III The chances of a successful outcome more than once in the given period are negligible.
IV The value of µ, i.e., the average number of occurrences in a certain period, should be
specified.