Statistics and

Probability
Quarter 3 – Module 9:
Solving Problems Involving Mean and
Variance of Probability Distributions

CO_Q3_Statistics and Probability SHS

Module 9
Statistics and Probability
Alternative Delivery Mode
Quarter 3 – Module 9: Solving Problems Involving Mean and Variance of Probability
Distributions
First Edition, 2021

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 Statistics and
Probability
Quarter 3 – Module 9:
Solving Problems Involving Mean
and Variance of Probability
Distributions
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each

SLM. This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better understanding of
the lesson. At the end of each module, you need to answer the post-test to self-check
your learning. Answer keys are provided for each activity and test. We trust that you
will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they can
best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests. And
read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.
 What I Need to Know

This module was intended and written focusing on learners like you. It is here to help
you apply the mean or expected value of the discrete random variable or the average
value when the experiment is repeated many times to real-life situations such as
taking a chance in a raffle, making a bet in games of chance and considering an
insurance policy. It is hoped that this module will help you to make decisions
whether or not to participate in games of chances like lotteries, raffle draws, and
gambling.
In this module, you will learn how to compute the probability or the chance of
winning and losing. Your knowledge and skill on how to use the formula for the mean
and variance that you learned from previous modules are important, for you to solve
real-life problems involving the mean and variance of probability distributions. Good
luck and happy learning.

After going through this module, you are expected to:

1. calculate the mean and the variance of a discrete random variable;
2. solve real-life problems involving mean and variance of probability
distributions; and
3. interpret the expected value of a discrete random variable.

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Module 9
 What I Know

Before studying this module, take this test to determine what you already know
about the topic covered.
Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. Which of the following represents the mean value of a discrete random variable?
a. Expected value c. Standard deviation
b. Median d. Variance

For numbers 2-3, refer to the table below:

𝑥𝑥 2 4 6 8
𝑃𝑃(𝑥𝑥) 0.12 0.29 0.24 0.35

2. Which of the following is the correct formula to find the expected value of the
probability distribution?
a. 𝐸𝐸(𝑥𝑥) = ∑[𝑥𝑥 ∙ 𝑃𝑃(𝑥𝑥)] c. 𝐸𝐸(𝑥𝑥) = ∑[𝑥𝑥 2 ∙ 𝑃𝑃(𝑥𝑥)] − 𝑢𝑢2

b. 𝐸𝐸(𝑥𝑥) = ∑[𝑥𝑥 2 ∙ 𝑃𝑃(𝑥𝑥)] d. 𝐸𝐸(𝑥𝑥) = �∑[𝑥𝑥 2 ∙ 𝑃𝑃(𝑥𝑥)] − 𝑢𝑢2

3. What is the mean or the expected value of the given probability distribution?
a. 4.85
b. 5.64
c. 6.32
d. 7.12

For numbers 4-6, refer to the following:

You buy one ₱500.00 raffle ticket for a prize of new Toyota Wigo car valued at
₱675, 000.00. Two thousand tickets are sold.

4. What is the probability that you will win the prize?

a. 1
1
b.
500
1
c.
2000
1
d.
675000

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Module 9
5. If X denotes the net gain from the purchase of a randomly selected ticket.
Which of the following tables of values shows the probability distribution
of X?
a. x 675,000 -500 c. x 674,500 -500
P(x) 1 1999 P(x) 1 1999
2000 2000 2000 2000

b. X 675,000 500 d.V x 674,500 500

P(x) 1 1999 P(x) 1 1999
2000 2000 2000 2000

6. What is the mean or the expected value for those who will buy the tickets?
a. -162.50 b. -162.25 c. 162.25 d. 162.50

For numbers 7-8, refer to the following:

One thousand tickets are sold for ₱10.00 each. One ticket will win ₱2,000.00, two
tickets will win ₱1,000.00 each and four tickets will win ₱500.00 each.

7. What is the probability of winning any amount in the purchase of two

tickets?
1 2 5 7
a. b. c. d.
1000 1000 1000 1000

8. What is the probability of losing in the purchase of two tickets?

2 500 998 999
a. 𝑏𝑏. c. d.
1000 1000 1000 1000

For numbers 9-11, refer to the following:

A roulette wheel in a fiesta carnival has the numbers 1 through 50. If you bet ₱5.00,
you will have a chance to win a kitchen utensil worth ₱200.00.

9. If X denotes the net gain from taking a chance to bet on a randomly selected
number. Which of the following tables of values shows the probability distribution
of X?
a. x 195 -5 c. x 50 -5
P(x) 1 49 P(x) 1 199
50 50 200 200

b. x 5 -5 d. x 200 5
P(x) 1 4 P(x) 1 5
5 5 200 200

10. What is the mean or the expected value for those who take a bet?
a. – 1.8 b. -1 c. -0.95 d. -0.5

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11. How much the organizer will earn if 100 games will be played such that each
number has a bet of ₱5.00?
a. ₱2,000.00 b. ₱3,000.00 c. ₱4,000.00 d. ₱5,000.00

For items 12-13, refer to the following:

Good Hands is a car insurance company who offers to pay ₱600,000.00 if a car is
destroyed beyond repair due to an accident. This insurance policy cost ₱25,000.00 per
year and the probability that the company will need to pay the amount of insurance is
0.003.

12. What is the probability that the company will NOT pay any amount to its
client within a year?
a. 0.003 b. 0.250 c. 0.500 d. 0.997

13. What is the expected value of the insurance to its buyer?

a. Each policyholder expects to lose ₱20,000.00 every year.
b. Each policyholder expects to lose ₱22,500.00 every year.
c. Each policyholder expects to lose ₱23,200.00 every year.
d. Each policyholder expects to lose ₱25,000.00 every year

For items 14 to 15, refer to the following:

A life insurance company will sell a ₱500,000.00 five-year term life insurance policy
exclusive for police enforcers for a premium of ₱1,000.00. The chance that a police
enforcer will survive in 5 years is 99.95%.

14. What is the probability that a police enforcer will NOT survive in five-
years?
a. 0.05
b. 0.005
c. 0.005
d. 0.0005

15. What is the expected value to the company of a single policy?

a. ₱550.00
b. ₱650.00
c. ₱750.00
d. ₱850.00

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Module 9
 Lesson Solving Problems Involving

1 Mean and Variance of

Probability Distributions
Are you interested in buying lotto tickets? How about making a bet in a roulette
wheel or taking a chance in raffle tickets? Do you want to know how much gain will
you have if you will win in games of chance or how much money will be wasted if you
lost on a bet? Are you planning to invest money in a life insurance company? If you
had thought of the following questions this lesson is for you.

What’s In

For you to begin let us recall first the previous lessons which are very important for
you to succeed. From your last module, you learned that the expected value or
mean value of a discrete random variable, denoted by x, is computed by first
multiplying each possible x value by the probability of observing that value and then
adding the resulting quantities.
Symbolically,
𝐄𝐄(𝐱𝐱) = 𝐮𝐮𝐱𝐱 = ∑[𝐱𝐱 𝐢𝐢 ∙ 𝐏𝐏(𝐱𝐱 𝐢𝐢 )].
where:
𝑥𝑥𝑖𝑖 is the value of the random variable for the outcome 𝑖𝑖;
𝑃𝑃(𝑥𝑥𝑖𝑖 ) is the probability that a random variable will have an outcome 𝑖𝑖;
𝑢𝑢𝑥𝑥 is the mean of a random variable 𝑥𝑥; and
𝐸𝐸(𝑥𝑥) is the expected value of random variable 𝑥𝑥.

Also, you already learned the equation for computing the variance of a discrete
random variable. To find the variance, remember the formula:
𝜎𝜎 2 = �(𝑥𝑥 − 𝜇𝜇)2 ∙ 𝑃𝑃(𝑥𝑥)

which can be simplified as

𝜎𝜎 2 = [∑ 𝑥𝑥 2 ∙ 𝑃𝑃(𝑥𝑥)] − 𝑢𝑢2
where:
𝑥𝑥 2 is the square value of a discrete random variable 𝑥𝑥;
𝑃𝑃(𝑥𝑥) is the probability of an outcome of a discrete random variable;
𝑢𝑢2 is the square of the mean of a discrete random variable; and
𝜎𝜎 2 is the variance of a discrete random variable

Moreover, the standard deviation 𝝈𝝈, of a discrete random variable X is the square
root of its variance, hence the formula is:

𝝈𝝈 = �∑(𝒙𝒙 − 𝝁𝝁)𝟐𝟐 ∙ 𝑷𝑷(𝒙𝒙) or 𝝈𝝈 = �[∑ 𝒙𝒙𝟐𝟐 ∙ 𝑷𝑷(𝒙𝒙)] − 𝒖𝒖𝟐𝟐

The variance and standard deviation of a discrete random variable X may be

interpreted as measures of variability of the values assumed by the random
variable in repeated trials of the experiment.

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Before you proceed to the next lesson, study the example below, and reflect whether
you are now ready to proceed to the new lesson.
Example
The table below shows the probability distribution of the number of girls in a family
of three children in Barangay Maligaya. Calculate the mean and variance of the
random variable with the given probability distribution.
Outcome or GBB,BGB, GGB, GBG,
BBB GGG
Sample Point BBG BGG
𝑥𝑥 0 1 2 3
𝑃𝑃(𝑥𝑥) 1/8 3/8 3/8 1/8
Solution:
Finding the mean of the discrete random variable:
𝐸𝐸(𝑥𝑥) = 𝑢𝑢𝑥𝑥 = �[𝑥𝑥𝑖𝑖 ∙ 𝑃𝑃(𝑥𝑥𝑖𝑖 )]
1 3 3 1
𝐸𝐸(𝑥𝑥) = 𝑢𝑢𝑥𝑥 = ��0 ∙ � + �1 ∙ � + �2 ∙ � + �3 ∙ ��
8 8 8 8
3 6 3
𝐸𝐸(𝑥𝑥) = 𝑢𝑢𝑥𝑥 = �(0) + � � + � � + � ��
8 8 8
12 3
𝐸𝐸(𝑥𝑥) = 𝑢𝑢𝑥𝑥 = = = 1.5
8 2
Therefore, the mean or the expected value of the discrete random variable is 1.5.

To find the variance and standard deviation of the discrete random variable you need
to prepare a table like the one below.

𝑥𝑥 𝑃𝑃(𝑥𝑥) 𝑥𝑥 2 𝑥𝑥 2 ∙ 𝑃𝑃(𝑥𝑥)
0 1� 0 0
8
1 3�8 1 3�8
2 3� 4 12� 𝑜𝑜𝑜𝑜 3�
8 8 2
3 1� 9 9�
8 8
From the table, the variance and standard deviation can be computed using:
3 12 9 24
� 𝑥𝑥 2 ∙ 𝑃𝑃(𝑥𝑥) = 0 + + + = =3
8 8 8 8
𝜎𝜎 2 = �� 𝑥𝑥 2 ∙ 𝑃𝑃(𝑥𝑥)� − 𝑢𝑢2 = 3 − (1.5)2 = 3 − 2.25 = 0.75

𝜎𝜎 = �𝜎𝜎 2 = √0.75 = 0.87

Therefore, the variance of the discrete random variable is 0.75, while the
standard deviation is 0.87.

Notes to the Teacher

Tell to the students that using calculator is okay because it helps them to save time in
solving the problems. Remind them that the most important is they should be able to
know how to use the formulas to find the correct answer. Use of calculator is just an aid
to make their work easier. Inform them also that in other books the formula for mean or
expected value is 𝐸𝐸 (𝑥𝑥 ) = 𝑢𝑢𝑥𝑥 = ∑[𝑥𝑥 ∙ 𝑃𝑃(𝑥𝑥)]

Likewise, introduce to the students the Greek letters Σ (uppercase sigma) and 𝜇𝜇
(lowercase mu) and the proper way to read it. Σ is read as “summation” while 𝜇𝜇 is read as
“mean” in statistics.

6 CO_Q3_Statistics and Probability SHS

Module 9
 What’s New

GAME OF CHANCE

Read the conversation below and answer the questions that follow.

Oh no! I do understand but

if you want to take a
chance I have here 5 raffle
Our television set is tickets out of 1000 released
no longer functional tickets which cost ₱100.00
Hey Romulo I and I need to buy a each. If you will be lucky
have a problem. new one. But the enough, you’ll get a 32-
Ok, so what’s
problem is I don’t inch LED Television worth
your problem
have enough budget ₱15,000.00.
my friend?
for that.

That’s a good deal and

the prize is so exciting!
But I need to check my
budget before buying a
ticket. Thanks for
informing me. I’ll just
call you when I am ready
to buy. By the way,
when is the raffle date?
It will be 10 days from now.
You still have time to decide,
just call me if you already Thank you
have your decision. You’re welcome
Romulo!
Cardo!

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Questions:

1. If you are Cardo, would you buy a raffle ticket? Why?

_____________________________________________________________________
2. If Cardo decided to buy five tickets, what is the probability that he would
win the prize if 1000 tickets were sold? ____________________________
What is the probability that Cardo will lose the bet? __________________
3. How much money will Cardo gain if he wins the prize?________________
4. How much money will be wasted if he will not win the prize and he buy
one ticket?___________________________________________________________
5. What if 1000 tickets were purchased by different individuals, what is the
expected value of buying one ticket?___________________________________
6. How would you describe Romulo as a friend?___________________________

What is It

To answer question 1 in the previous activity, you have to understand first the
consequences of buying a ticket, will it give you advantages and disadvantages? Can
you afford to spend extra money to buy a ticket?

Look at this way, if you will buy a ticket you will have a chance to win the
prize worth ₱15,000.00 if you are lucky enough it is good for you. But on the other
hand, what if you are not lucky, then you will lose ₱500.00 for buying the five tickets.
Considering this amount (₱500.00), you are aware that you can buy more essential
needs like foods, school and medical supplies, and other miscellaneous needs with
this amount rather than using it to buy tickets. However, if you allocated extra money
for other unexpected expenses, buying a ticket is not bad at all. The point of making
the right decision is not difficult if you know how to consider what is more important.

If you are Cardo, you need to understand the given details on the situation for
you to make the right decision. If you will win the prize, your net gain is ₱15,000.00
less ₱500.00 (amount spend for buying 5 tickets) or ₱14,500.00. The probability that
5
you will win the prize is five out of one thousand tickets or . But if you decide to
1000
buy one ticket only, then your net gain is ₱15,000.00 less ₱100.00 (amount spend for
buying 1 ticket) or ₱14,900.00 and the probability that you will win the prize is one
1
out of one thousand tickets or . The more tickets you buy, the more chances of
1000
winning. However, your chance of losing is higher than your chance of winning
because it is equal to 1 less than the probability of winning if you buy five tickets the
995
probability that you will not win the prize is or 0.995 while if you buy one ticket
1000
999
only, the probability is or 0.999.
1000

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 What if 1000 tickets were purchased by different individuals, what is the
expected value of buying one ticket? To answer this question, you need to apply the
formula for the mean or expected value of the discrete probability distributions which
is equal to 𝐄𝐄(𝐱𝐱) = 𝐮𝐮𝐱𝐱 = ∑[𝐱𝐱 𝐢𝐢 ∙ 𝐏𝐏(𝐱𝐱 𝐢𝐢 )]. The expected value is also defined as the average
value of a random variable over numerous trials of an experiment. The table below
is the probability distribution of the given situation.

𝑥𝑥 14, 900 -100

𝑃𝑃(𝑥𝑥) 1 999
𝑜𝑜𝑜𝑜 0.001 𝑜𝑜𝑜𝑜 0.999
1000 1000

Using the formula of expected value,

𝐄𝐄(𝐱𝐱) = (𝟏𝟏𝟏𝟏, 𝟗𝟗𝟗𝟗𝟗𝟗)(𝟎𝟎. 𝟎𝟎𝟎𝟎𝟎𝟎) + (−𝟏𝟏𝟏𝟏𝟏𝟏)(𝟎𝟎. 𝟗𝟗𝟗𝟗𝟗𝟗)

𝐄𝐄(𝐱𝐱) = −𝟖𝟖𝟖𝟖
The negative value means that one loses money on the average. In particular,
someone who buy tickets, and although has a chance to win losses ₱85.00 per ticket
purchased.

Having this knowledge, you can now make a wise decision. But remember,
important things should be prioritized. If you can afford to buy tickets without
sacrificing your essential needs. It is okay to take a chance sometimes. You should
also consider saving money for future use, because not every day you have enough
funds, having extra money would be a great help in times of need.

Meanwhile, having a friend like Romulo who are ready to help you or to advise
you in time of need is a precious one. He is a kind of friend who does not insist on
what he wants but let his friend decide on his own after giving a piece of advice. You
are blessed if you will find a true friend that you can rely on. Having a true friend is
wealth.

9 CO_Q3_Statistics and Probability SHS

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 What’s More

In the following activities, read each situation carefully to solve each problem. Write
your answer on a separate sheet of paper.

Practice Activity 1

Raffle Tickets Problem

Senior citizens of a particular barangay organize a Christmas raffle bonanza.

One thousand raffle tickets are sold for ₱50.00 each. Each one has an equal chance
of winning. The first prize is a 32-inch LED TV worth ₱10,000.00, the second prize
is an electric oven worth ₱5,000.00 and the third prize is a grocery pack worth ₱2,500.00.
Let X denote the net gain from the purchase of one ticket.

a. Complete the table below showing the probability distribution of X.

𝑥𝑥 9,950 4,950 2,450 -50

𝑃𝑃(𝑥𝑥)

b. Find the probability of winning any amount in the purchase of one

ticket. Let 𝑃𝑃(𝑊𝑊) the probability of winning any amount

𝑃𝑃(𝑊𝑊) = _____ + _____ + _____

𝑃𝑃(𝑊𝑊) = _____
c. Find the expected value of X, then interpret.

The expected value is equal to the product of net gain and the probability
of winning (in this case you have three chances of winning, you may win
the first, second, or third prize) plus the product of net loss and the
probability of losing.

𝐄𝐄(𝐱𝐱) = _______________

Interpretation:__________________________________________________________
________________________________________________________________________
________________________________________________________________________

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Independent Assessment 1

Raffle for a Cause

A raffle is held to raise funds for a charity event. A raffle ticket costs ₱150.00
and there are two thousand tickets to be sold. Only one ticket holder will win a prize
of ₱150, 000. 00. Construct the probability distribution of the discrete random
variable, compute for the expected value, and interpret the result.

Practice Activity 2

Game of Chance Problem (A Roulette Wheel)

A roulette wheel in a fiesta carnival has the numbers 1 through 30. If you bet
₱5.00 you will have a chance to win a prepaid load worth ₱100.00. Let X denote the
net gain for a bet.

a. Complete the table below showing the probability distribution of X.

𝑥𝑥 95 -5
𝑃𝑃(𝑥𝑥)

b. Find the expectation if you play a bet and interpret the result.

𝐄𝐄(𝐱𝐱) = _______________

Interpretation:__________________________________________________________
________________________________________________________________________

c. How much the organizer will earn if 100 games will be played such that each
number has a bet of ₱5.00? ____________________________
(Hint: Compute for the net gain of the organizer per game and multiply it
by 100)
Independent Assessment 2

Colored Wheel
A roulette wheel is divided into eight colors blue, red, yellow, green, orange,
violet, black, and white. Each time roulette spins you can have a bet of ₱10.00. If the
outcome is either black, blue, or violet you will lose the bet. But if the outcome is
red or yellow, your money will be doubled (you will win additional ₱10.00 plus your
bet), and if it is green or orange you will win nothing and your bet will be given to
you. But if the result is white, your money will be tripled (you will win an additional
₱20.00 plus your bet. If X denotes the net gain of a player what is the expected value
of a ₱10.00 bet?

11 CO_Q3_Statistics and Probability SHS

Module 9
Practice Activity 3

Insurance Investment Problem

A life insurance company will sell a ₱250,000.00 one-year term life insurance
policy for members of armed forces of the Philippines for a premium of ₱500.00. Let
X denote the net gain from the insurance company. Based on the collected data of
the company, a member of the armed forces police has a 99.96% chance of surviving
within one year. Let X the net gain of an insurance company from a single
policyholder.

a. Complete the table below showing the probability distribution of X.

𝑥𝑥 500 -249,500
𝑃𝑃(𝑥𝑥)
b. Find the expectation if you play a bet and interpret the result.

𝐄𝐄(𝐱𝐱) = _______________

Interpretation:_____________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Independent Assessment 3

Body Parts Insurance

An insurance company will sell a ₱500,000.00 one-year term leg insurance
policy for ramp models for a premium of ₱1,000.00. Find the expected value to the
company of a single policy if a model has a 99.97% chance of being uninjured in one
year?

Compare your answers with those found in the Answer Key on the last part of
this module. Did you get all items correct? Great! If you did, you learned the lesson
well. If you were not able to get the correct answer, review your computations.

12 CO_Q3_Statistics and Probability SHS

Module 9
 What I Have Learned

A. Complete the following statements by writing the correct word or words and
formulas.
1. The mean of a discrete random variable X is also called the _________________.

2. The expected value is the _______________ value of a random variable over

numerous trials of an experiment

3. The formula to find the mean or expected value of a discrete random variable is
___________________.

4. The _________________ and __________________ of a discrete random variable X

indicate the variability of X over a large number of experiments or trials.

B. In your own words, write the different steps on how you can solve real-life problems
involving mean or expected value.

_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

13 CO_Q3_Statistics and Probability SHS

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 What I Can Do

Raffle for a Cause!

Things to do:

Make a plan for a Christmas raffle bonanza in which the PWD (Person with
Disability) will be the beneficiaries. The plan should consist of the number of tickets
to be sold, the amount per ticket, and the number of winners and their
corresponding prizes. Let X be the random variable representing your net gain per
ticket, and compute the expected value of X and the net gain if all tickets will be
sold out. Also, using your creativity prepare a sample of your ticket. You may use
the sample guide to complete your task.

Name of Project

Brief Description

Number of tickets to be sold

Price of ticket to be sold

Winners and prizes:

Expected Value of X:

(Please show the probability

distributions and your solution)
Net Gain of the Project:

Sample Ticket:

14 CO_Q3_Statistics and Probability SHS

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Rubric for the task:

Categories 4 3 2 1
Excellent Satisfactory Developing Beginning

Organization of Plan The name of the The name of the The name of the The name of the
project is project is project is project is not
appropriate and somewhat somewhat appropriate and
with clear appropriate and appropriate and with vague
descriptions of with clear vague descriptions of
the project. descriptions of the descriptions of the project.
project. the project.

Accuracy of the The computations There is one There is one There are more
Solutions are accurate with mistake in the mistake in the mistakes with no
a table of computations computations table of
probability with a table of with no table of probability
distributions. probability probability distributions.
distributions. distributions.

Originality and Sample Ticket is Sample Ticket is Sample Ticket is Sample Ticket is
creativity (Sample unique and shows nice but not just ordinary with just an ordinary
Ticket) creativity with unique and with complete and without
complete complete information. complete
information. information. information.

Assessment

Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.

1. Which of the following represents the expected value of the discrete random
variable?
a. mean c. mode
b. median d. variance

For numbers 2-3, refer to the table below:

𝑥𝑥 1 2 3 4
𝑃𝑃(𝑥𝑥) 1 3 2 1
5 10 5 10

2. What is the expected value of the given probability distribution?

2 2
a. c.
10 5
12 12
b. d.
10 5

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3. What of the following best described the expected value of a probability
distribution?
a. It measures the variability of the values assumed by the random variables.
b. It gives the difference between the highest and lowest values assumed by
the random variables
c. It is the square root of the variance of the probability distribution.
d. It is the average value of a random variable over numerous trials of an
experiment.

For numbers 4-6, refer to the following:

One thousand tickets are sold for ₱50.00 each. One ticket will win ₱10,000.00, two
tickets will win ₱5,000.00 each and three tickets will win ₱1,000.00 each. Let X
denote the net gain from the purchase of a randomly selected ticket.

4. What is the probability that you will win a prize if you buy two tickets?
2
a. 2 c.
1000
2 998
b. d.
500 1000

5. Which of the following tables of values shows the probability distribution of X?

a. x 10,000 5,000 1,000 -50

P(x) 1 2 3 994
1000 1000 1000 1000

b. x 10,000 5,000 1,000 -50

P(x) 1 2 3 1
999 998 997 999

c. x 9,950 4,950 950 -50

P(x) 1 2 3 994
1000 1000 1000 1000

d. x 9.950 4,950 1,000 -50

P(x) 1 2 3 1
999 998 997 999

6. What is the mean or the expected value of a person who buys a ticket?

a. - 25 c. 27
b. - 27 d. 25

16 CO_Q3_Statistics and Probability SHS

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 For numbers 7-8, refer to the following:

You buy three ₱1,000.00 raffle tickets for a prize of a new 20-passenger Sarao
jeepney valued at ₱800, 000.00. Two thousand tickets are sold.

7. What is the probability of winning the prize in the purchase of three

tickets?
1 3
a. c.
2000 2000
2 4
b. d.
2000 2000

8. What is the probability that you will NOT win the prize? (refer to item 7)
3 997
a. c.
2000 2000
97 1997
b. d.
2000 2000

For numbers 9-11, refer to the following:

A roulette wheel in an amusement park has the numbers 1 through 60. If you bet
₱100.00 for a randomly chosen number from 1 to 60, you will have a chance to win
a cellular phone worth ₱5,000.00.

9. If X denotes the net gain from taking a chance to bet on a randomly

selected number. Which of the following tables of values shows the
probability distribution of X?

a. X 5000 -1000 c. x 60 -1
P(x) 1 59 P(x) 1 59
60 60 60 60

b. x 4900 -1000 d. x 100 -1

P(x) 1 59 P(x) 1 59
60 60 60 60

10. What is the mean or the expected value for those who take a bet?
a. – 10.12 c. -16.67
b. -15.40 d. -18.25

11. How much the organizer will earn if 100 games will be played?
a. ₱50,000.00 c. ₱150,000.00
b. ₱100, 000.00 d. ₱250,000.00

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 For numbers 12 -15, refer to the following:
A life insurance company will sell a 1 million three-year term life insurance policy
exclusive in a particular risk group for a premium of ₱2,000.00. Let X denote the
net gain to the company from the sale of one policy.

12. If a person in this risk group has a 99.95% chance of surviving within
three years, what is the probability that he will NOT survive within three
years?
a. 0.995 c. 0.005
b. 0.9995 d. 0.0005

13. How much is the net loss of the insurance company from a policyholder
if his family will avail of the insurance benefits?
a. ₱1,000,000.00 c. ₱998,000.00
b. ₱999, 000.00 d. ₱995,000.00
14. Which of the following tables of values shows the probability distribution of X, if
each policyholder has a 99.95% chance of surviving within three years?
a. x 2,000 -1,000,000 c. x 2000 -998,000
P(x) 0.9995 0.0005 P(x) 0.9995 0.0005
b. d.
x 1,000,000 2,000 x 2000 -998,000
P(x) 0.9995 0.0005 P(x) 0.9995 0.0005

15. Find the expected value to the company of a single policy?

a. ₱1,500.00 c. ₱1,800.00
b. ₱1,690.00 d. ₱1,950.00

18 CO_Q3_Statistics and Probability SHS

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 Additional Activities

If you want to try more, these activities are for you. It will help you to practice
your skill in solving real-life problems involving mean or expected value and to
make wise decisions on matters like taking a chance in lottery, starting your
own business and considering investment.

Study and analyze each situation to solve the problem.

1. Game of Chance (Lottery)

A lotto works by picking 6 numbers from 1- 42 (Combinations of numbers from

1-42 taken 6 at a time produce 5,245,786 number combinations). A ticket costs
₱24.00 to play the lottery. If you win today, you would win 5 million pesos
after taxes. If you play the lottery today, what would be your expected winnings
or losses?

2. Business Opportunity

The net gain for a day of Joy in a Cup Bread and Pastry Shop depends on the
number of cupcakes sold within a day. If X is the amount of income within a
day for five consecutive days. Compute the mean or expected earnings for a
day and the variance. The probability of X is shown below.

𝑥𝑥 5000 4500 4000 3500 3000

𝑃𝑃(𝑥𝑥) 0.20 0.16 0.31 0.17 0.16

3. Investment

A person may earn ₱100,000.00 by investing in the stocks of an international

company with a probability of 0.40 or lose ₱35,000.00 over the same period
with a probability of 0.60. Let X denote the net gain of a person who will invest
in the company, construct the probability distribution of X, and compute for
the expected value of a person who will invest in the same company. Interpret
the result

How well did you perform in this lesson?

Are you now ready for the next lesson?
If your answer is Yes, I am HAPPY for you. Good Luck and happy learning on your next journey. �

19 CO_Q3_Statistics and Probability SHS

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 Module 9
CO_Q3_Statistics and Probability SHS 20
What I know Assessment
1. a
1. a 2. d
2. a 3. d
3. c 4. c
4. c 5. c
5. c 6. b
6. a 7. c
7. b 8. c
8. c 9. b
9. a 10. c
10. b 11. b
11. d 12. d
12. d 13. c
13. c 14. c
14. d 15. a
15. c
What I Have Learned Additional Activities
A. 1. The expected value
2. average
1. 𝐸𝐸(𝑥𝑥) = −23.05
3.
2. 𝐸𝐸(𝑥𝑥) = 4035
3. 𝐸𝐸(𝑥𝑥) = 19000
E(x) = ux = �[xi ∙ P(xi )]
4. variance and standard
deviation
Answer Key
 Module 9
CO_Q3_Statistics and Probability SHS 21
What's More
Independent Activity 1
9,950 4,950 2,450 -50
1/1000 1/1000 1/1000 997/1000

𝑥𝑥
𝑃𝑃(𝑥𝑥)
1 1 1
𝑃𝑃(𝑊𝑊) = + + = 3/1000
1000 1000 1000
𝐄𝐄(x) = −32.50
Interpretation: If someone were to buy tickets repeatedly and although he has a chance to win, he would lose ₱32.50 on average per
ticket purchased,
Independent Assessment 1
149,850 -150
1/2000 1999/2000

𝑥𝑥
𝑃𝑃(𝑥𝑥)
1 1999
Interpretation: If someone were to buy tickets repeatedly and although he has a chance to win, he would lose ₱75.00 on average per
E(x) = (149850) � � + (−150) � � = −75
ticket purchased.

2000 2000
Independent Activity 2
𝑥𝑥 95 -5
𝑃𝑃(𝑥𝑥) 1/30 29/30
1 29
Interpretation: If someone were to bet on numbers at the roulette repeatedly and although he has a chance to win, he would lose ₱1.67
E(x) = (95) � � + (−5) � � = −1.67
per bet.

30 30
If each number on the roulette has a bet, the net gain of the organizer is equal to 30 times ₱5.00 less than the prize (₱100.00). So, the
net gain per game is ₱50.00, and if there will be 100 games, the total net gain will be ₱5,000.00.
Independent Assessment 2
20 10 0 -10
1/8 1/4 1/4 3/8

𝑥𝑥
𝑃𝑃(𝑥𝑥)
𝟏𝟏 𝟏𝟏 𝟏𝟏 𝟑𝟑 𝟓𝟓
Independent Activity 3
𝐄𝐄(𝐱𝐱) = (𝟐𝟐𝟐𝟐) � � + (𝟏𝟏𝟏𝟏) � � + (𝟎𝟎) � � + (−𝟏𝟏𝟏𝟏) � � = = 𝟏𝟏. 𝟐𝟐𝟐𝟐
𝟖𝟖 𝟒𝟒 𝟒𝟒 𝟖𝟖 𝟒𝟒
𝑥𝑥 500 -249,500
𝑃𝑃(𝑥𝑥) 0.9996 0.0004
E(x) = (500)(0.9996) + (−249500)(0.0004) = 400
Interpretation: With a probability of 0.04%, the insurance company may lose a large amount of money, but typically gains ₱400.00
per policy sold, on the average.
Independent Assessment 3
E(x) = (1000)(0.9997) + (−499000)(0.0003) = 850
References
Lim, Yvette F., Nocon, Rizaldi C., Nocon, Ederlina G., Ruivivar, Leonor A. Math for
Engaged Learning Statistics and Probability. Quezon City: Sibs Publishing
House, Inc. 2016.

Malate, Jose S. Statistics and Probability for Senior High School. Sta. Ana Manila:
Vicarish Publications and Trading, Inc. 2017.

22 CO_Q3_Statistics and Probability SHS

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