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random variable
is a variable that takes on numerical values
determined by the outcome of a random experiment.
Random
It is called ___ because its value depends on chance.
Variable
It is called a ___ because it can take different possible
values.
Discrete Random Variable
Takes on a countable number of possible
values.
countable outcomes (whole numbers).
Values can be listed (e.g., 0, 1, 2, 3, ...)
Number of students present in class, number of heads in coin tosses
Continuous Random Variable
Takes on an uncountable number of values within an interval.
measurable outcomes (decimals possible).
Values can take any value within a range (fractions, decimals)
Height of students, time taken to finish a race, temperature
probability distribution
A ___ of a discrete random variable shows
how the total probability (which is 1) is distributed among all
possible values of the variable.
• It lists each possible value of the random variable along with
its corresponding probability.
discrete probability distribution
It must satisfy these two main
properties:
Each probability is between 0 and 1
The sum of all probabilities equals 1
Each probability corresponds to a possible value of the random
variable.
Probability Mass Function
gives the probability that discrete variable takes on a specific value
Valid Probability Distribution
All probabilities must be non-negative.
The sum of all probabilities must equal 1.
If these are not met, the table or PMF is invalid.
Expected Value (Mean) of a Discrete Random Variable
Reports the central location of the data
The Expected Value or Mean of a discrete random variable gives the longrun average value of the variable after many repetitions of the experiment.
It represents what you expect to happen on average.
Variance
it measures how much the values of the random
variable deviate from the mean.
Standard Deviation
is simply the square root of the variance, giving a measure of
spread in the same unit as X.
Expected Value
Variance
Standard Deviation
___Long-term average outcome
___ Measure of spread of probabilities
___Square root of variance (same unit as
data)Real-life use: risk assessment, business forecasting, game
fairness, insurance pricing
1. Binomial Distribution
2. Poisson Distribution
3. Geometric Distribution
4. Hypergeometric distribution
Discrete probability distributions describe situations where a
random variable takes countable values (0, 1, 2, 3, ...).
Below are the four most common types used in statistics and
probability.
Binomial Distribution
Characteristics
The experiment consists of n independent trials.
Each trial has two possible outcomes: success or failure.
— Customer can purchase or not purchase
— Citizen can vote or not vote
The probability of success, p, is the same for each trial.
The random variable X = number of successes in ntrials.
The random variable is the result of counting the number of successes (this will be the horizontal axis)
The probability of success must be the same for each trial (this is not the probability we will be calculating)
Binomial Distribution Has The Following
Characteristics:
Each trail must be independent of any other trial
The outcome of one trial does not affect the outcome of any other
trial
There is no pattern
* Example: Multiple choice exam: a,a,a, b,b,b, a,a,a, ,b,b,b...
Binomial Distribution Has The Following
Characteristics: