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Calculating Mean Variance Discrete Random Variable

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Regina Jordan
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14 views

Calculating Mean Variance Discrete Random Variable

Uploaded by

Regina Jordan
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Calculating the Mean and

Variance of a Discrete
Random Variable
UNDERSTANDING AND CALCULATING KEY METRICS
Introduction to Discrete Random
Variables

 Definition: A discrete random variable is a variable that can


take on a countable number of distinct values.
 Examples: Number of heads in a series of coin flips, number of
students in a class.
Mean (Expected Value) of a Discrete
Random Variable

 Definition: The mean or expected value of a discrete random


variable is the long-run average value of repetitions of the
experiment it represents.
 Formula: E(X) = μ = ∑ [x * P(x)]
 Where x is the value of the random variable and P(x) is the
probability of x.
 Example: Rolling a fair die: E(X) = 1*(1/6) + 2*(1/6) +
3*(1/6) + 4*(1/6) + 5*(1/6) + 6*(1/6) = 3.5
Variance of a Discrete Random
Variable

 Definition: The variance of a discrete random variable is a


measure of the spread or dispersion of the random variable's
possible values.
 Formula: Var(X) = σ² = ∑ [(x - μ)² * P(x)]
 Where x is the value of the random variable, μ is the mean, and
P(x) is the probability of x.
 Example: Rolling a fair die: Var(X) = (1-3.5)²*(1/6) + (2-
3.5)²*(1/6) + (3-3.5)²*(1/6) + (4-3.5)²*(1/6) + (5-3.5)²*(1/6) +
(6-3.5)²*(1/6) = 2.92
Calculating the Mean

 Steps:
 1. List the possible values of the random variable.
 2. Determine the probability of each value.
 3. Multiply each value by its corresponding probability.
 4. Sum the results.
 Example: Number of heads in 3 coin flips.
Example Problem: Calculating the
Mean

 Problem: A bag contains 3 red, 2 green, and 5 blue balls. A ball


is drawn at random, and you win $1 for a red ball, $2 for a
green ball, and $3 for a blue ball. What is the expected
winning amount?
 Solution:
 - P(Red) = 3/10, P(Green) = 2/10, P(Blue) = 5/10
 - E(X) = 1*(3/10) + 2*(2/10) + 3*(5/10) = 2
Calculating the Variance

 Steps:
 1. Calculate the mean (expected value) of the random variable.
 2. Subtract the mean from each value of the random variable
and square the result.
 3. Multiply each squared result by its corresponding
probability.
 4. Sum the results.
 Example: Number of heads in 3 coin flips.
Example Problem: Calculating the
Variance

 Problem: Using the previous example, what is the variance of


the winning amount?
 Solution:
 -μ=2
 - Var(X) = (1-2)²*(3/10) + (2-2)²*(2/10) + (3-2)²*(5/10) = 0.6
Summary

 Key Points:
 - Mean (Expected Value) provides the long-run average of
repetitions of the experiment.
 - Variance measures the spread or dispersion of the random
variable's values.
 - Understanding how to calculate both is crucial for analyzing
discrete random variables.
Practice Problems

 Problem 1: A fair six-sided die is rolled. What is the mean and


variance of the outcome?
 Problem 2: In a lottery, you win $5 if you draw a red ball, $10
if you draw a green ball, and $20 if you draw a blue ball. The
probabilities of drawing each ball are 0.1, 0.3, and 0.6
respectively. What is the expected winning amount and its
variance?
Questions and Discussion

 Invite questions from the audience


 Discuss any additional examples or clarifications needed
References

 List any textbooks, websites, or other resources used to


compile the presentation.

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