THIRD QUARTER

RANDOM VARIABLE

Random variable is a variable that is used to quantify the outcome of a random experiment. As data can be of two types,
discrete and continuous hence, there can be two types of random variables. A discrete random variable can take on an
exact value while the value of a continuous random variable will fall between some particular interval. Probability
distributions are used to show how probabilities are distributed over the values of a given random variable.

A random variable is a variable that can take on many values. This is because there can be several outcomes of a random
occurrence. Thus, a random variable should not be confused with an algebraic variable. An algebraic variable represents
the value of an unknown quantity in an algebraic equation that can be calculated. On the other hand, a random variable
can have a set of values that could be the resulting outcome of a random experiment.

Types of Random Variables

1. Discrete Random Variable

A discrete random variable is a variable that can take on a finite number of distinct values. For example, the
number of children in a family can be represented using a discrete random variable. A probability distribution is
used to determine what values a random variable can take and how often does it take on these values.
2. Continuous Random Variable
A random variable that can take on an infinite number of possible values is known as a continuous random
variable. Such a variable is defined over an interval of values rather than a specific value. An example of a
continuous random variable is the weight of a person. The probability that a continuous random variable takes
on an exact value is 0 thus, a probability density function is used to describe such a variable.

Normal Random Variable

A random variable that follows a normal distribution is known as a normal random variable. The parameters of a normal
random variable are the mean μ and variance σ 2.

Mean of a Random Variable

The average value of a random variable is called the mean of a random variable. The mean is also known as the expected
value. It is generally denoted by E[X]. where X is the random variable. The mean or expected value of a random variable
can also be defined as the weighted average of all the values of the variable. The formula for the mean of a random
variable are given below:

E ( X )=∑ [ x ∙ P(x) ]

Variance of a Random Variable

The variance of a random variable can be defined as the expected value of the square of the difference of the random
variable from the mean. The variance of a random variable is given by Var[X] or σ 2. If μ is the mean then the formula for
the variance is given as follows:

σ 2=[ ∑ ( x−μ)2 ∙ P (x) ]

Standard Deviation of a Random Variable

Standard deviation is the positive square root of the variance. It is one of the basic methods of statistical analysis.
Standard Deviation is commonly abbreviated as SD and denoted by the symbol 'σ’ and it tells about how much data
values are deviated from the mean value.

σ =√ ∑ (x−μ)2 ∙ P(x )