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Mean and Variance of Random Variable

The document discusses the mean and variance of random variables. It defines the mean as the average value of a probability distribution and provides the formula to calculate it. The variance and standard deviation describe how spread out the values are from the mean and their formulas are provided. Steps are outlined to calculate the variance and standard deviation which involve finding the mean, subtracting from each value, squaring, multiplying by probabilities, and summing. An example calculation is shown.
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0% found this document useful (0 votes)
39 views

Mean and Variance of Random Variable

The document discusses the mean and variance of random variables. It defines the mean as the average value of a probability distribution and provides the formula to calculate it. The variance and standard deviation describe how spread out the values are from the mean and their formulas are provided. Steps are outlined to calculate the variance and standard deviation which involve finding the mean, subtracting from each value, squaring, multiplying by probabilities, and summing. An example calculation is shown.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Mean and

Variance of
Random
Variables
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Objectives
■ Illustrates the mean and variance of a discrete random variable.

■ Calculates the mean and variance of a discrete random variable.

■ Interprets the mean and the variance of a discrete random variables

■ Solves problems involving mean and variance of probability

distributions.
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Mean
Random
Variables
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Mean of a Discrete Random
Variable
The Mean 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.
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Mean of a Discrete Random
Variable
It is computed using the
formula:
x̄ = ∑x p(x)
Where x is the outcome and p(x) is
the probability of the outcome.
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Example
Determine the mean or expected value
of random variable below.

x 0 1 2 3 4
p(x) 1/5 1/5 1/5 1/5 1/5
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Solution
x̄ = ∑x p(x)
x̄ = ∑ ((0)(1/5) + (1)(1/5) + (2)(1/5) + (3)(1/5) +
(4)(1/5))
x̄ = ∑ (0 + 1/5 + 2/5 + 3/5 + 4/5)
x̄ = ∑ (10/5 0r 2)
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Therefore, the mean for the above random variable


is 2.
Example
Find the mean of the random variable Y
representing the number of red color
chocolate per 160 grams pack of colored
chocolate packages that has the following
distribution
y 4 5 6 7
p(y) 0.10 0.37 0.33 0.20
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Solution
x̄ = ∑x p(x)
x̄ = ∑ ((4)(0.10) + (5)(0.37) + (6)(0.33) + (7)
(0.20))
x̄ = ∑ (0.40 + 1.85 + 1.98 + 1.40)
x̄ = ∑ (5.63)
Therefore, the mean of the probability distribution
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is 5.63. this implies that the average number of red


chocolates per 160 grams is 5.63
Example
The probability that a customer
will buy 1, 2, 3, 4, or 5 items in a
grocery store are 3/10, 1/10,
1/10, 2/10 and 3/10, respectively.
What is the average number of
items that a customer will buy?
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Steps in
Finding the
Mean?
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1. Construct

Construct the probability


distribution for the random
variable X representing the
number of items that the
customer will buy.
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2. Multiply

Multiply the value of the


random variable X by the
corresponding probability.
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3. Add

Add the results obtained in


Step 2. Results obtained is
the mean of the probability
distribution.
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Solution
Number of items X Probability P(x)
1 3/10
2 1/10
3 1/10
4 2/10
5 3/10
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Solution
Number of Probability X P(x)
items X P(x)
1 3/10 3/10
2 1/10 2/10
3 1/10 3/10
4 2/10 8/10
5 3/10 15/10
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Solution
Number of Probability X P(x)
items X P(x)
1 3/10 3/10
2 1/10 2/10
3 1/10 3/10
4 2/10 8/10
5 3/10 15/10
Total 31/10 or 3.1
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Solution
x̄ = ∑x p(x)
x̄ = ∑ ( 3/10 + 2/10 + 3/10 + 8/10 + 15/10)
x̄ = ∑ (31/10)
x̄ = ∑ (3.1)
Therefore, the mean of the probability distribution
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is 3.1. This implies that the average number of item


that the customer will buy is 3.1.
Variance and
Standard
Deviation
Random
Variables
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Variance and Standard
Deviation
The Variance and Standard
deviation describe the
amount of spread,
dispersion, or variability of
the items in a distribution.
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Variance and Standard
Deviation
These are two variables that
describe how scattered or
spread out the scores are
from the mean value of the
random variable.
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Formula for Variance

σ 2 =
∑ (x - x̄ ) p(x)
2
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Formula for Standard Deviation

σ =
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Formula for Variance

x̄ - mean
p(x) - Probability of the outcome

σ - variance
2

σ -Standard Deviation
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Steps in
Finding the
Variance and
Standard
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1. Find

Find the mean of the


probability
distribution.
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2. Subtract

Subtract the mean from each


value of the random variable
X.
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3. Square

Square the result


obtained in Step 2.
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4. Multiply

Multiply the results


obtained in Step 3 by the
corresponding probability.
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5. Get the sum

Get the sum of the results


obtained in Step 4. Results
obtained is the value of the
variance of probability
distribution.
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Example
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 standard deviation of the
probability distribution by following
the given steps.
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Number of Cars Probability P(x)
Sold X
0 10%
1 20%
2 30%
3 20%
4 20%
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Number of Probability X P(X)
Car Sold X P(X)
0 0.10 0
1 0.20 0.20
2 0.30 0.60
3 0.20 0.60
4 0.20 0.80
Total 2.20

x̄ = ∑x p(x) = 2.20
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x P(x) X P(X) x - x̄
0 0.10 0 0 – 2.20
= -2.20
1 0.20 0.20 1 – 2.20
= -1.20
2 0.30 0.60 2 – 2.20
= -0.20
3 0.20 0.60 3 – 2.20
= .80
4 0.20 0.80 4 – 2.20
= 1.80
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x P(x) X P(X) x - x̄
0 0.10 0 -2.20 4.84
1 0.20 0.20 -1.20 1.44
2 0.30 0.60 -0.20 0.04
3 0.20 0.60 0.80 0.64
4 0.20 0.80 1.80 3.24
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x P(x) X P(X) x - x̄ P(X)

0 0.10 0 -2.20 4.84 0.484


1 0.20 0.20 -1.20 1.44 0.288
2 0.30 0.60 -0.20 0.04 0.012
3 0.20 0.60 0.80 0.64 0.128
4 0.20 0.80 1.80 3.24 0.648
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x P(x) X P(X) x - x̄ P(X)
0 0.10 0 - 4.84 0.484
2.20
1 0.20 0.20 - 1.44 0.288
1.20
2 0.30 0.60 - 0.04 0.012
0.20
3 0.20 0.60 0.80 0.64 0.128
4 0.20 0.80 1.80 3.24 0.648
TOTAL 1.56
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σ2 = ∑ (x - x̄ )2 p(x) = 1.56
TO SOLVE THE STANDARD
DEVIATION
σ =

σ =

= 1.25
σ
So, the variable of the number of cars sold per
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day is 1.56 and the standard deviation is 1.25


Activity
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Activit
y are tossed once,
When three coins
the probability distribution for the
random variable X representing
the number of heads that occur is
given below. Compute the mean,
variance and standard deviation of
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Number of Probability P(x)
Heads X
0 1/8
1 3/8
2 3/8
3 1/8
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