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2.1 Introduction

• Definition
• Examples

Chapter 2 2.2 Law of distributions

• Probability distribution function

• Probability density function
• Cumulative distribution function
RANDOM VARIABLE 2.3 Parameters

• Expectation
• Variance and standard deviation

2.4 Application in Economic and Bussiness

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2.1 Introduction Notation

Definition: Random Variables

A random variable is a function or rule that
assigns a number to each outcome of an
experiment

For each element of an experiment’s sample

Individual outcomes
space, the random variable can take on for a Random Variable
exactly one value

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Two types of random variables
Discrete random variable
Continuous random variable
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Examples
• Example 1: Flip the fair coin
• Let 𝑋 be the number of heads observed in an
experiment that flips a coin 3 times.
• The sample space of X
• Ω 𝑋 =
• The value of 𝑋 are 0,1,2,3.
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DISCRETE RANDOM VARIABLE
• Discrete Random Variable: A random variable
that can take on only a finite or countably
infinite set of outcomes
• Example 2: Rolling the dice
• Let 𝑋 be the number of dots in the face’s dice
observed in an experiment that rolling dice 1
times.
• Sample space: Ω 𝑋 =
• The value of 𝑋 are 1,2,3,4,5,6
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• Example 3: Driver license

Continuous Random Variable
• A man will take the examination
continuously until he pass driver license • Continuous Random Variable: A random
test. variable that can take on any value along a
• 𝑋 : random variable continuum

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• Example 4: 2.2 Law of distributions

• Let 𝑌 be time to write the statistics exam in
FTU where time limit is 60 minutes and
students can not leave examination room
after 45 minutes.
• 𝑌?
• Probability Distribution: Table, Graph, or
Formula that describes values a random
variable can take on, and its corresponding
probability:
• Discrete probability distribution (discrete RV)
• Probability density function(continuous RV)
• Cumulative distribution function (continuous
RV and discrete RV)

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