Lesson 1: RANDOM VARIABLES

Time Frame: Week 1

Content Standard:
The learner demonstrates understanding of key concepts of random variables and probability distribution
Performance Standard: The learner is able to apply an appropriate random variable for a given real-life problem
(such as in decision making and games of chance).
Learning Competencies:
The learner:
1. illustrates a random variable (discrete and continuous).;
2. distinguishes between a discrete and a continuous random variable.;
3. illustrates a probability distribution for a discrete random variable and its properties.;
4. calculates the mean and the variance of a discrete
5. random variable.

LESSON CONTENT

LESSON 1.1. TWO TYPES OF RANDOM VARIABLES

A Random Variable is a function whose value is a real number determined by each element in the
sample space – the set of all possible outcomes of an experiment and is denoted by S.

The variables that are measured in most scientific studies, whose values occur by chance, are called to be
“random variables”. These are assumed to follow a probability distribution when used in a statistical
analysis.

Ex.

A coin is tossed 3 times. Let be the random variable denoting the number of heads. Find the values of the
random variable .

Outcomes TTT TTH THT THH HTT HTH HHT HHH

x=no . of heads 0 1 1 2 1 2 2 3

Solution: To do this, first identify all the possible outcomes of the given statistical experiment.
Determine the specific random variable defined in the problem i.e.

Therefore, the possible values of the random variable are 0, 1, 2 & 3.

TWO TYPES OF RANDOM VARIABLES

• DISCRETE RANDOM VARIABLES
• CONTINUOUS RANDOM VARIABLES
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• DISCRETE RANDOM VARIABLES

If a random variable takes only a finite number of values or if the set of possible
 LESSON 1.2 Probability Distribution for a Discrete Random Variable

- In this lesson, you will learn how to construct a probability distribution for a discrete random variable and
represent this probability distribution with a graph, a table, or a formula. You will also learn the two conditions
that all probability distributions must satisfy.

Definition (Discrete Probability Distribution)

A discrete probability distribution is an equation, or a table that lists all possible values that a discrete
random variable can take on together with associated probabilities.

Examples:
1. Construct a probability distribution or the probability mass function of discrete random variable; is the
number of heads when a coin is tossed thrice. Make a histogram for this probability distribution.
Solution:
Constructing a probability distribution or the probability mass function of discrete random variable can be
done in two ways: the tabular form and the equation form. For the tabular form, it includes all the possible
outcomes, the random variable and the probability i.e.

Outcomes TTT TTH THT THH HTT HTH HHT HHH

X  number of heads 0 1 1 2 1 2 2 3

Thus,
X  number of heads 0 1 2 3
P X  18 38 38 18

1 8, if x0
 3 8, if x 1

For the equation form, P X    . The histogram for this
3 8, if x2

1 8, if x3

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 A random variable is a numerical description of the outcome of a statistical experiment. A random
variable that may assume only a finite number or an infinite sequence of values is said to be discrete; one
that may assume any value in some interval on the real number line is said to be continuous. For
instance, a random variable representing the number of automobiles sold at a particular dealership on
one day would be discrete, while a random variable representing the weight of a person in kilograms (or
pounds) would be continuous.
The probability distribution for a random variable describes how the probabilities are distributed
over the values of the random variable. For a discrete random variable, x, the probability distribution is
defined by a probability mass function, denoted by f(x). This function provides the probability for each
value of the random variable. In the development of the probability function for a discrete random
variable, two conditions must be satisfied: (1) f(x) must be nonnegative for each value of the random
variable, and (2) the sum of the probabilities for each value of the random variable must equal one.

LESSON 1.3 Mean and Standard Deviation of Discrete Random Variables

Characteristics of a Probability Distribution

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Mean Value or Expected Value

The mean value, or expected value, of a discrete random variable X is given by the following
equation:

This definition is equivalent to the simpler one you have learned before:

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The Variance
The variance of a discrete random variable is given by the following formula:

The Standard Deviation

The square root of the variance, or, in other words, the square root of s2, is the standard deviation of a
discrete random variable:

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Now we calculate the standard:
c. The graph of p(x) is shown below:

We can use the mean, or µ, and the standard deviation, or s, to describe p(x) in the same way
we used x and s to describe the relative frequency distribution. Notice that µ = 3.5 is the center
of the probability distribution. In other words, if the five cancer patients receive chemotherapy
treatment, we expect the number of them who are cured to be near 3.5. The standard deviation,
which is s = 1.02 in this case, measures the spread of the probability distribution p(x).

LESSON SUMMARY

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 LESSON 1.4 Sums and Differences of Independent Random Variables

A probability distribution is the set of values that a random variable can take on. At this time, there are three ways
that you can create probability distributions from data. Sometimes previously collected data, relative to the
random variable that you are studying, can help to create a probability distribution. In addition to this method, a
simulation is also a good way to create an approximate probability distribution. A probability distribution can also
be constructed from the basic principles, assumptions, and rules of theoretical probability. The examples in this
lesson will lead you to a better understanding of these rules of theoretical probability.

Sums and Differences of Independent Random Variables

Example: Create a table that shows all the possible outcomes when two dice are rolled simultaneously. (Hint:
There are 36 possible outcomes.)

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As stated previously, the patients for this survey have been randomly selected from a large population, and
therefore the outcomes are independent. The probability for each outcome can be calculated by multiplying the
appropriate proportions as shown:
P(no for 1st) •P(no for 2nd)=(0.2)(0.2) = 0.04
P(yes for 1st) •P(no for 2nd)=(0.8)(0.2) = 0.16
P(no for 1st) •P(yes for 2nd)=(0.2)(0.8) = 0.16
P(yes for 1st) •P(yes for 2nd)=(0.8)(0.8) = 0.64

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Thus, the expected number of fast food meals purchased by a student at the local university is 13.93, and the
standard deviation is 14.43. Note that the mean should not be rounded, since it does not have to be one of
the values in the distribution. You should also notice that the standard deviation is very close to the expected
value. This means that the distribution will be skewed to the right and have a long tail toward the larger
numbers.

Technology Note: Calculating mean and variance for probability distribution on TI-83/84 Calculator

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Linear Transformations of

If you add the same value to all the numbers of a data set, the shape and standard deviation of the data set
remain the same, but the value is added to the mean. This is referred to as re-centering the data set. Likewise, if
you rescale the data, or multiply all the data values by the same nonzero number, the basic shape will not
change, but the mean and the standard deviation will each be a multiple of this number. (Note that the standard
deviation must actually be multiplied by the absolute value of the number.) If you multiply the numbers of a
data set by a constant d and then add a constant c, the mean and the standard deviation of the transformed
values are expressed as follows:

These are called linear transformations, and the implications of this can be better understood if you return to
the casino example.
Example: The casino has decided to triple the prizes for the game being played. What are the expected
winnings for a person who plays one game? What is the standard deviation? Recall that the expected value
was $2.60, and the standard deviation was $6.45.

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 Lesson Summary

A chance process can be displayed as a probability distribution that describes all the possible outcomes, x. You
can also determine the probability of any set of possible outcomes. A probability distribution table for a
random variable, X, consists of a table with all the possible outcomes, along with the probability associated
with each of the outcomes. The expected value and the variance of a probability distribution can be calculated
using the following formulas:

For the random variables X and Y and constants c and d, the mean and the standard deviation of a linear
transformation are given by the following:

If the random variables X and Y are added or subtracted, the mean is calculated as shown below:

If X and Y are independent, then the following formulas can be used to compute the variance:

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 ACTIVITY

2. Send me screenshot of your OED score for Performance task 1

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