STATISTICS AND PROBABILITY

CHAPTER 1: RANDOM VARIABLES AND PROBABILITY DISTRIBUTION

Lesson 1. Understanding Random Variables

 The concept of probability distribution is very important in statistical analysis of data. This is specifically true
when we try to estimate the true value of a variable, using sample data. Moreover, we also use probability
distribution in testing hypothesis.

Random Variables
-is a numerical quantity that is assigned to the outcomes of an experiment.
-it is a variable that assumes numerical values associated with the events of an experiment.
- is a function that associates a real number to each element in the sample space.
- a capital letter will be used to denote the random variable.

Sample Space
-the set of all possible outcomes of an experiment.

To determine the values of the random variables in an experiment, follow these steps:
a. List the sample space of the experiment.
b. Count the number of the random variable in each outcome and assign this number to this outcome.

EXAMPLE 1

Suppose two coins are tossed and we are interested to determine the number of heads that will come out. Let us
use H to represent the number of heads that will come out. Determine the value of the random variable H.

a. List the sample space of the experiment.

S= {HH, HT, TH, TT}
b. Count the number of the random variable in each outcome and assign this number to this outcome.

The values of the random variable H in this

experiment are 0, 1 and 2.

EXAMPLE 2

A basket contains 10 ripe and 4 unripe bananas. If three bananas are taken from the basket one after the other,
determine the possible values of the random variable R representing the number of ripe bananas.

a. List the sample space of the experiment.

S= {RRR, RRU, RUR, URR, UUR, URU, RUU, UUU}
b. Count the number of the random variable in each outcome and assign this number to this outcome.

The values of the random variable R in this

experiment are 0, 1, 2 and 3.
Discrete and Continuous Random Variables

Discrete Random Variables

-is one that can assumes only a countable number of values. It is a random variable whose possible values
form a finite or countable set of numbers.
Continuous Random Variables
-can assume infinite number of values in one or more intervals.
-is generated from an experiment in which things are counted but not measured.

Lesson 2. Discrete Probability Distribution

-correspondence that assigns probabilities to the values of a random variable.

-is also called probability mass function.
-is a listing of the possible values and the correspondence probabilities of a discrete random variable or a formula for
the probabilities

STEPS IN DISCRETE PROBABILITY DISTRIBUTION

Step 1: List the sample space of the experiment.

Step 2: Count the number of each outcome.

Step 3: Construct the frequency distribution of the values of the random variable.

Step 4: Construct the probability distribution of the random variable by getting the probability of occurrence
of each value of the random variable.

THE PROBABILITY DISTRIBUTION OF THE RANDOM VARIABLE CAN BE WRITTEN AS FOLLOWS:

EXAMPLE 1

A basket contains 10 ripe and 4 unripe bananas. If three bananas are taken from the basket one after the other,
determine the possible values of the random variable R representing the number of ripe bananas.

Step 1: List the sample space of the experiment. Let R represent the ripe bananas and U represent the unripe
bananas.

S= {RRR, RRU, RUR, URR, UUR, URU, RUU, UUU}

Step 2: Count the number of the random variable in each outcome and assign this number to this outcome.

Step 3: Construct the frequency distribution of the values of the random variable.

Step 4: Construct the probability distribution of the random variable by getting the probability of occurrence
of each value of the random variable.

THE PROBABILITY DISTRIBUTION OF THE RANDOM VARIABLE R CAN BE WRITTEN AS FOLLOWS:

 Properties of a Discrete Probability Distribution

Find the following:

1. P (R=3) = 1/8
2. P (R=1) = 3/8
3. P (R>1) = ½
P (r > 1), there are two possible values of R. These are 2 and 3.
P ( P> 1 )=P ( 2 )+ P ( 3 )
3 1 1
+ =
8 8 2

4. P (R<2) = ½
P (r < 2), there are two possible values of R. These are 1 and 0.
P ( P< 2 )=P ( 1 )+ P ( 0 )
3 1 1
+ =
8 8 2

5. Σ P (R)= 1
To find Σ P (R) we need to find the sum of all the probability values.
Σ P ( R ) =P ( 3 )+ P ( 2 ) + P ( 1 )+ P(0)
1 3 3 1
+ + + =1
8 8 8 8
NOTE: OBSERVE THAT EACH PROBABILITY VALUE IS LESS THAN OR EQUAL TO ONE, BUT GREATER THAN OR EQUAL
TO ZERO. NOTICE ALSO THAT THE SUM OF ALL PROBABILITIES IS EQUAL TO ONE.