Lesson 2

Mean, Variance, and Standard

Deviation of a Discrete
Probability Distribution and its
Application
Prepared by:
Ms. Mary Guia Villaspin, LPT
Learning Objectives
• Illustrate the mean, variance, and
standard deviation of a discrete
random variable.
• Calculate the mean, variance, and
standard deviation of discrete
random variable.
• Solve problems involving mean and
variance of a probability
distributions
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
 Module 2
Inclusive Dates: January 30 – February 3, 2023

Course Code: STATPR

Course Title: STATISTICS AND PROBABILITY
Course Description: The students must know how to find the mean and variance of a random variable, to
apply sampling techniques and distributions, to estimate population mean and
proportion, to perform hypothesis testing on population mean and proportion, and to
perform correlation and regression analyses on real-life problems.
Course Unit: 1
Content Standard: The learners demonstrate an understanding of key concepts of random variables and
probability distributions.
Performance Standard: The learners is able to apply an appropriate random variable for a given real-life
problem (such as in decision making and games of chance).
DepEd Most Essential Learning Competencies: 1. Illustrates the mean and variance of a discrete random variable.
2. Calculates the mean and the variance of a discrete random variable.
3. Interprets the mean and the variance of a discrete random variable.
4. Solves problems involving mean and variance of probability distributions.

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

Discussion/Lecture
spread and variability

Mean Variance Standard deviation

average of
all possible LOW
HIGH
outcomes; If the values are
If the values are high, the individual
expected high, the individual outcomes of the
outcomes of the experiment are
experiment are far
value relative to each
closely spaced
with each other.
other.

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

 The measure of central location of a random variable.
Mean of a Random Variable The mean of the random variable is not a prediction of the
value of 𝑿 but only an expectation.

A measure of variability or the spread of the values of the

random variable 𝑿.
Variance of a Random Variable
The variance measures the degree of spread of different
values of random variable about its mean.

Standard Deviation Positive square root of variance

A large measure of variability means the values are far from the expected value. A small variability
means the values are close to the expected value.

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

Mean - 𝝁 𝝁 = 𝒙1 ∙ 𝑷 𝒙1 + 𝒙2 ∙ 𝑷 𝒙2 + 𝒙2 ∙ 𝑷 𝒙2 … + 𝒙𝒏 ∙ 𝑷 𝒙𝒏

𝝁 = ෍ 𝒙 ∙ 𝑷(𝒙ሻ 𝝁 = 𝑬(𝒙ሻ

𝟐
Variance - 𝝈
𝜎2 = ෍ 𝑋 − 𝜇 2 ∙ 𝑃(𝑋ሻ

Standard deviation - 𝝈
𝜎= ෍ 𝑋−𝜇 2 ∙ 𝑃(𝑋ሻ

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

 Finding the Mean of Probability Distribution

Step 1: Construct the

probability distribution by Step 2: Multiply the Step 3: Add the
finding the possible values of random variable results obtained in
random variables and its by its probability. step 2.
corresponding probability.

Finding the Variance of Probability Distribution

Step 1: Solve Step 2: Subtract Step 4: Multiply Step 5: Lastly,

Step 3: Get
for the mean each value of the results in step get the sum
the square of
of the given the random 3 by its of the results
the results in
probability variable and the corresponding obtained in
step 2.
distribution. mean. probability. step 4.

Finding the Standard Deviation of Probability Distribution

Step 1: Simply get the

square root of the
variance to get the
standard deviation

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

Example 1: Number of Inquiries Received

Probability
Number of Inquiries (Y)
P(Y)

21 0.09

22 0.21

23 0.32

24 0.15

25 0.23

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

 𝟐
Y P(Y) 𝒀 ∙ 𝑷(𝒀ሻ 𝒀−𝝁 𝒀−𝝁 𝒀−𝝁 𝟐
∙ 𝑷(𝒀ሻ

21 0.09 1.89 −2.22 4.93 0.44

22 0.21 4.62 −1.22 1.49 0.31

23 0.32 7.36 −0.22 0.05 0.02

24 0.15 3.60 0.78 0.61 0.09

25 0.23 5.75 1.78 3.17 0.73

𝜇 = ෍ 𝑌 ∙ 𝑃(𝑍ሻ 𝟐𝟑. 𝟐𝟐 𝜎2 = ෍ 𝑌 − 𝜇 2 ∙ (𝑍ሻ 𝟏. 𝟓𝟗

𝜎= ෍ 𝑌−𝜇 2 ∙ 𝑃(𝑍ሻ
1.26
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
Alternative steps in solving the variance and standard deviation of the probability distribution

Y P(Y) 𝒀 ∙ 𝑷(𝒀ሻ 𝒀𝟐 ∙ 𝑷(𝒀ሻ

𝜎 2 = ෍ 𝑌 2 ∙ 𝑃(𝑌ሻ − 𝜇2

21 0.09 1.89 39.69

𝜎 2 = 540.76 − 23.22 2

22 0.21 4.62 101.64 𝝈𝟐 = 𝟏. 𝟓𝟗

23 0.32 7.36 169.28

𝜎= ෍ 𝑌 2 ∙ 𝑃(𝑌ሻ − 𝜇2
24 0.15 3.6 86.40

𝝈 = 𝟏. 𝟐𝟔
25 0.23 5.75 143.75

𝟐𝟑. 𝟐𝟐
𝜇 = ෍ 𝑌 ∙ 𝑃(𝑌ሻ
෍ 𝑌 2 ∙ 𝑃(𝑌ሻ = 𝟓𝟒𝟎. 𝟕𝟔
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
 Problem Solving on Mean and
Variance of a Discrete Probability
Distribution

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

 Fair game - the
player winnings
and losses will
even out.

expected value is 0

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

Example 1: A game consists of drawing one card from a deck of
cards. If the card drawn is a face card (Jack, Queen, or King), the
player wins Php 500. Otherwise, s/he loses Php 150. Determine if the
game is fair.

x 𝑃𝑥 (𝑥ሻ

12 3
𝑃ℎ𝑝 500 𝑜𝑟
52 13

40 10
𝑃ℎ𝑝 150 𝑜𝑟
52 13

3 10
𝐸 𝑥 = 500 + (−150ሻ
13 13

𝑬 𝒙 =𝟎
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
Example 2: Suppose that tossing 2 coins, you will receive Php 100 if two heads appear.
Otherwise, you pay Php 30. Is this game fair? Why?

x 𝑃𝑥 (𝑥ሻ

1
𝑃ℎ𝑝 100 𝑜𝑟 0.25
4

3
𝑃ℎ𝑝 30 𝑜𝑟 0.75
4

1 3
𝐸 𝑥 = 100 + (−30ሻ
4 4

𝟓
𝑬 𝒙 = 𝒐𝒓 𝟐. 𝟓
𝟐
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
Example 3: A school organized a fund-raising activity for its donations to victims of a recent
typhoon. It involves selling of 1 000 raffle tickets. One ticket costs Php 100. The lone winner of
this raffle will receive free tuition worth Php 30 000. What is the expected net gain if you buy
one raffle ticket?

x 𝑃𝑥 (𝑥ሻ

1
𝑃ℎ𝑝 29 900
1 000

999
𝑃ℎ𝑝 100
1 000

1 999
𝐸 𝑥 = 29 900 + (−100ሻ
1 000 1 000

𝑬 𝒙 = −𝟕𝟎
Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables
The concept of expected value and variance of a random variable can be
applied in some investment problems.
Consider the table below of the two investment options that are presented
to a business person. If you will be the business person, what investment are
you going to choose? Why?
Investment A Investment B
PROFIT (x) P(x) PROFIT (x) P(x)

Php 10 000 0.6 Php 20 000 0.2

Php 5 000 0.3 Php 16 000 0.5

- Php 3 000 0.1 - Php 15 000 0.3

Mean Standard Deviation

Investment A Php 7 200 Php 4 069.40

Investment B Php 7 500 Php 14 807.09

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables

Written Work 2

A. Write your answer in a whole sheet of paper (intermediate).

1. In a restaurant, the probability that a person will order 1, 2, 3 or 4 large pizza are 0.45, 0.3,
0.17 and 0.08, respectively. Let X be the number of large pizza ordered by a random person
in a restaurant. Find the mean, variance, and standard deviation of the probability distribution
of X.
2. Find the mean and standard deviation of the following probability distribution
2.1
X P(X) 2.2 X P(X)
1 0.15 1 0.5
2 0.30 2 0.2
3 0.25 3 0.3
4 0.30

Lesson 2: Mean, Variance, and Standard Deviation of a Discrete Random Variables