Mean and Variance of Random Variable
Mean and Variance of Random Variable
Variance of
Random
Variables
SLIDESMANIA.C
Objectives
■ Illustrates the mean and variance of a discrete random variable.
distributions.
SLIDESMANIA.C
Mean
Random
Variables
SLIDESMANIA.C
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.
SLIDESMANIA.C
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.
SLIDESMANIA.C
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
SLIDESMANIA.C
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)
SLIDESMANIA.C
σ 2 =
∑ (x - x̄ ) p(x)
2
SLIDESMANIA.C
Formula for Standard Deviation
σ =
SLIDESMANIA.C
Formula for Variance
x̄ - mean
p(x) - Probability of the outcome
σ - variance
2
σ -Standard Deviation
SLIDESMANIA.C
Steps in
Finding the
Variance and
Standard
SLIDESMANIA.C
1. Find
x̄ = ∑x p(x) = 2.20
SLIDESMANIA.C
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
SLIDESMANIA.C
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
SLIDESMANIA.C
x P(x) X P(X) x - x̄ P(X)
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
SLIDESMANIA.C