Lecture 5-Discrete Probability Distribution
Lecture 5-Discrete Probability Distribution
Random
Variable
Review and Preview
• In previous lessons observed sample data to construct
frequency distributions
random variable
Melanie
Why we called it Random Variable?
Because it can take any value
For Example:
P(X=1) = 0.634 P(X=5) = 0.033
0.700
How likely is that the next
customer will just buy 1 ice
0.600
cream?
Probability, P(X=x)
0.500
P(X=1) = 0.634
0.400
0.300
0.200
Out of 50 customers, how
many would you expect a
0.100
customer to buy more than
0.000
1 2 3 4 5 6 3 ice cream? 4
Series1 0.634 0.163 0.122 0.033 0.033 0.016
Number of Ice Cream a customer order (X)
P(X>3) =P(X=4)+ P(X=5)+ P(X=6)
= 0.033+0.033+0.016
=0.082
Requirements for a Probability Distribution
• σ 𝑃 𝑋 = 1 : where X assume all possible values. The sum of all
probabilities must be equal to 1 or 100%
P(X) 1/36 2/36 3/36 4/36 5/36 6/36 5/36 4/36 3/36 2/36 1/36
0.18
0.16
What is our random variable? 0.14
0.12
X=sum of the face up dices 0.10
P (X)
0.08
0.06
0.04
0.02
0.00
2 3 4 5 6 7 8 9 10 11 12
Sum of two Dices
2. Suppose that you buy a raffle ticket for $5. If 1,000 tickets are sold
and there are 10 third place winners of $25, three second place
winners of $100 and 1 grand prize winner of $2,000, construct a
probability distribution table.
𝑃(𝑋)
Mean, Variance and Standard
Deviation of discrete probability
distribution
Mean, Variance and Standard Deviation
Mean
• Recall: when we calculate the mean from a frequency
distribution table, we use the formula
σ 𝑓. 𝑥 σ 𝑓. 𝑥
𝜇= =
σ𝑓 𝑁
Where 𝑓 is the frequency and N is total number of samples in
the data set. We can rearrange the equation above
𝑓
𝜇 = 𝑥. = 𝑥. 𝑃(𝑥) = [𝑥. 𝑃(𝑥)]
𝑁
𝜇 = σ[𝑥. 𝑃(𝑥)]
Variance
For similar reason as when we derive variance in previous lesson, the
variance for probability distribution function is then,
𝜎= 𝑥−𝜇 2 . 𝑃(𝑥)
𝜎2 = 𝑥 − 𝜇 2 . 𝑃(𝑥)
Standard Deviation
𝝈= 𝑥 2. 𝑃 𝑥 − 𝜇2
Example:
• Consider the offspring of peas from
parents both having the green yellow
combination of pod genes. Under these
conditions, the probability that the
3
offspring has a green pod is or 0.75,
4
that is the probability of having green
pods from 5 randomly selected peas.
𝐿𝑒𝑡 𝐺 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑎𝑠 𝑤𝑖𝑡ℎ 𝑔𝑟𝑒𝑒𝑛 𝑝𝑜𝑑𝑠
Hypothesis:
-The gender selection method is ineffective
-The probability of baby girl being born is 50%
Study A Study B
100 births 100 births
75 girls 55 girls
25 boys 45 boys
The Expected Value of x is the sum of the products of the values of x and
their corresponding probabilities.
Calculate the Expected Value of the quantity of time that a third grader
spends each day playing electronic games.
E(x) = x1 P(x1) + x2 P(x2) + x3 P(x3) + … + xn P(xn)
# of Hours (x) Probability P(x)
0 0.3
1 0.4
2 0.2
3 0.1
Conclusion: Third graders spend 1.1 hrs playing video games each
day.
Example 2:
Find the expected number of boys for a three-child family. Assume girls
and boys are equally likely. Key: b=Boy; g = Girl
1, 2, 3, 4, 5
6
Finding Expected Winnings
A player pays $3 to play the following game:
Win $7 by rolling a 6 on a single die,
Win $1 by rolling any other number.
What are the expected net winnings for the game?
ANS: The player will not have an expected net winning for the game,
since his Expected Value is a loss of $1.00.
Example 4:
Imagine you are businessman, and your company just developed new
cake products. Assume your cake product is as good if not better than
currently available in the market. A market study suggest that the
probability of sales is 0.75 (that is you will sell 75% of your inventory)
per month. Within a month where the cake is still good you will earn
$500, if the product is not sold by the end of the month (reaches
expiration date) you will lose $200. You want to know if this product is
profitable or not?
Probability, P(X) Outcome
Sold 0.75 $500
Not Sold 0.25 -$200
𝑃 𝑥 ∗𝑁∗𝑥+ 𝑃 𝑥 ∗𝑁∗𝑥
𝑁
𝑃 𝑥 ∗ 𝑥 + 𝑃 𝑥 ∗ 𝑥 = 𝑥 𝑃 𝑥 = 𝐸 𝑥
Expected Value
𝐸 𝑥 = 𝑥 𝑃 𝑥
Textbook Definition:
𝐸 𝑥 = 𝑥 𝑃 𝑥
𝐸 𝑥 = 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑉𝑎𝑙𝑢𝑒
Example
• You and your friend play a game. Your friend has a hat with 10
balls in it: 5 blue balls, 4 yellow balls, 1 red ball. You draw one ball
from the hat. If you draw:
a blue ball, you’ll win $0
a yellow ball, you’ll win $2
a red ball, you’ll win $10
Calculate for the expected value.
BINOMIAL PROBABILITY
DISTRIBUTION
Binomial probability Distribution
Binomial distribution is a specific type of a discrete probability
distribution.
Binomial probability distribution is the result of the procedure
according to the following criteria:
Questions Answer
1 YES
3 NO
4 YES
Ask yourself: are the outcomes independent of each other? In
other words, does the outcome of one trial (or one toss, or one
question) affect another trial?
Questions Answer
1 YES
4 NO
Ask yourself: Does the probability of success remain the same for
each trial?
Questions Answer
1 YES
Which of the four questions is Binomial Probability Distribution?
QUESTION #1
Notation for probability Distribution
The first in solving this is question to ask oneself, “is this procedure
met the four criteria of binomial probability distribution?”
Let X = color blind men
a. Probability that all 10 men are color blind
𝑃 𝑋 = 10 = (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) (0.08)
(0.08) (0.08) 0.08 = 0.08 10
𝑝𝑥
b. Probability that only two of the men are color blind
𝑃 𝑋 = 2 = (0.08)(0.08)(0.92)(0.92) (0.92) (0.92) (0.92) (0.92)
(0.92) 0.92 = 0.08 2 0.92 10−2
𝑝 𝑥 𝑞𝑛−𝑥
However, there are more than one way to define two color
blinded men. The two men can be the outcome of taking 2
10!
from 10. Therefore, 10𝐶2 =
10−2 !2!
𝑛!
n𝐶𝑥 =
𝑛−𝑥 !𝑥!
The binomial probability distribution is then
𝑛!
𝑃(𝑋 = 𝑥) = p𝑥 𝑞𝑛−𝑥
𝑛 − 𝑥 ! 𝑥!
c. Probability that at least two men are color blind
𝑃 𝑋 ≥ 2 = 1 − 𝑃 𝑋 ≤ 1 = 1 − 0.81 = 0.19
P(X=x) x P(X=x)
0 0.434388454
0.5
1 0.377729091
0.4 2 0.147807035
3 0.034274095
0.3 4 0.005215623
5 0.000544239
0.2 6 3.94376E-05
7 1.95963E-06
0.1
8 6.39011E-08
0
9 1.2348E-09
0 1 2 3 4 5 6 7 8 9 10 10 1.07374E-11
Three methods for finding the probabilities corresponding to
the random variable x in a binomial distribution
𝑛!
𝑃(𝑋 = 𝑥) = p𝑥 𝑞𝑛−𝑥
𝑛 − 𝑥 ! 𝑥!
• Method 2: Using Technology (e.g excel)
• Method 3: Tables (Table A-1 in Appendix of Elementary
statistics by Mario F. Triola)
Example
1. Medication side effects. The probability of adults who
takes the medicine that have side effects is 5%. 30 men are
taking for study, what is the probability of 2 men has side
effects when taking this new medication?
2. Number of Fraudulent Transactions. Suppose in the
probability that a credit card transaction in certain region is 2%.
If there are 50 transactions per year. Find the probability that
the number of fraudulent occurs more than 2.
3. Identifying Gender Discrimination. After being rejected for
employment, Maria Soares learns that the “Lorosa’e Unip Lda” has hired
only 3 women among the last 24 new employees. She also learns that the
pool of applicants is very large, with an approximately equal number of
qualified men and women. Help her address the charge of gender
discrimination by finding the probability of getting 3 or fewer women
when 24 people are hired, assuming that there is no discrimination based
on gender. Does the resulting probability really support such a charge?
Mean, Variance, and
Standard Deviation
for the Binomial Distribution
Formula for Mean, variance and Std for
binomial distribution
𝑴𝒆𝒂𝒏
𝜇 = 𝑛𝑝
𝑽𝒂𝒓𝒊𝒂𝒏𝒄𝒆
𝜎 2 = 𝑛𝑝𝑞
𝑺𝒕𝒂𝒏𝒅𝒂𝒓𝒅 𝑫𝒆𝒗𝒊𝒂𝒕𝒊𝒐𝒏
𝜎 = 𝑛𝑝𝑞
Example
4. Defective processing chips. A company produces chips for
cell phones. At one of its largest factories, 2% of the chips
produced are defective in some way. A quality checks involves a
randomly selecting and testing 500 chips.
a. What are the mean and standard deviation of the number of
defective processing chips in these samples.
b. In an actual experiment, a quality assurance officer collects
500 chips and find that 14 are defective. Does the officer’s
value of 14 defective chips unusual? Does this suggest that
the 2% probability is wrong?
Variation in Statistics
Example 4 is a good illustration of the importance of variation in
statistics. In a traditional algebra course, we might conclude that 14 is
not 2% of 500 simply because 14 does not equal 10 (which is 2% of
500). However, in statistics we recognize that sample results vary. We
don’t expect to get exactly 2% of the defective chips. We recognize
that as long as the results don’t vary too far away from the claimed
rate of 2%, they are consistent with that claimed rate of 2%.
5. Number of orders returned. Retail stores use the binomial
distribution to model the probability that they receive a certain
number of shopping returns each week. For example, suppose it
is known that 10% of all orders get returned at a certain store
each week.
a. Use excel to developed a table (probability mass function and
cumulative distribution function) and graph representing the x = 0
to x=15. The x represents the number of returns product to the
store. If there are 50 orders.
b. If there are 50 orders that week, find the probability that the
store receives more than 9 returns that week.
c. Find the mean and standard deviation if there are 50 orders
that week.
d. In a real experiment, in a week the store receives 15 returns.
Does this unusually high number of returns?
Number of orders return per week
0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Mass dist cummula
X P(X=x) P(X=x)
0 0.00515378 0.005154
1 0.02863208 0.033786
2 0.0779429 0.111729
3 0.13856515 0.250294
4 0.1809045 0.431198
5 0.1849246 0.616123
6 0.15410383 0.770227
7 0.10762807 0.877855
8 0.06427788 0.942133
9 0.03332927 0.975462
10 0.01518333 0.990645
11 0.00613468 0.99678
12 0.0022153 0.998995
13 0.0007195 0.999715
14 0.00021128 0.999926
15 5.6342E-05 0.999983
Poisson’s Probability
Distribution
Poisson Probability distribution
• Another type particular discrete probability distribution.
• The Poisson distribution is often used for describing the behavior of
rare events (with small probabilities)
• Definition
The Poisson distribution is a discrete probability distribution that
applies to occurrences of some event over a specified interval. The
random variable x is the number of occurrences of the event in an
interval. The interval can be time, distance, area, volume, or some
similar unit.
The probability of the event occurring x times over an interval is given
by
𝜇 𝑥 𝑒 −𝜇
𝑃 𝑥 = ; e = 2.71828
𝑥!
Requirements for the Poisson Distribution
• The random variable x is the number of occurrences of an event over
some interval
• The occurrences must be random
• The occurrences must be independent of each other
• The occurrences must be uniformly distributed over the interval being
used.
Parameters of the Poisson Distribution
• The mean is 𝜇
• The standard deviation 𝜎 = 𝜇
Binomial vs Poison
• A Poisson distribution differs from a binomial distribution in these
fundamental ways:
𝜇 = 𝑛𝑝
Example
5. Winning Bola Merah. In the SDSB game you pay $1 to
select sequence of 4 digits, such as 1432. If you play this game
once every day. Find the probability of winning exactly once in
365 days.
1
𝜇 = 𝑛𝑝 = 365 ∗ = 0.0365
10000
After having find the mean we can use poisons distributions to
calculate for P(x), where is probability of winning.