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MEAN

OF
RANDOM VARIABLE
GROUP PRESENTER:
BESAS, CADETE, CAPITO, CASTULO, DUGANG
•MEAN OF DISCRETE RANDOM VARIABLE

•MEAN OF CONTINUOUS RANDOM VARIABLE


MEAN
OF
DISCRETE RANDOM VARIABLE
MEAN OF DISCRETE RANDOM VARIABLE
• The mean of the discrete random variable X is also called the expected
value of X.
• Notationally, the expected value of X is denoted by E(X).

E(X) = μx = Σ [ xi * P(xi) ]

where xi is the value of the random variable for outcome i, μx is


the mean of random variable X, and P(xi) is the probability that
the random variable will be outcome i.
Example 1
• In a recent little league softball game, each player went to bat 4
times. The number of hits made by each player is described by the
following probability distribution.
What is the mean of the probability distribution?
(A) 1.00
(B) 1.75
(C) 2.00
(D) 2.25
(E) None of the above.
Solution
The correct answer is E. The mean of the
probability distribution is 2.15, as defined by the
following equation.

E(X) = 0*0.10 + 1*0.20 + 2*0.30 + 3*0.25 + 4*0.15 = 2.15


Example 2
• Suppose an individual plays a gambling game where it is
possible to lose $1.00, break even, win $3.00, or win $10.00
each time she plays. The probability distribution for each
outcome is provided by the following table:
Outcome -$1.00 $0.00 $3.00 $5.00
Probability 0.30 0.40 0.20 0.10
Solution
• The mean outcome for this game is calculated as follows:

μ = (-1*.3) + (0*.4) + (3*.2) + (10*0.1) = -0.3 + 0.6 + 0.5 = 0.8.

In the long run, then, the player can expect to win about 80 cents
playing this game -- the odds are in her favor.
MEAN
OF
CONTINUOUS RANDOM VARIABLE
MEAN OF CONTINUOUS RANDOM VARIABLE
• To move from discrete to continuous, we will simply replace the sums
in the formulas by integrals.
• Let X be a continuous random variable with range [a, b] and
probability density function f(x).

• So f(x) dx represents the probability that X is in an infinitesimal range


of width dx around x. Thus we can interpret the formula for E(X) as a
weighted integral of the values x of X, where the weights are the
probabilities f(x) dx.
Example 1
• Let X ∼ uniform(0, 1). Find E(X).

Solution:
X has range [0, 1] and density f(x) = 1. Therefore,

Not surprisingly the mean is at the midpoint of the range.


THAT’S ALL.
THANK YOU…

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