Stat.
ADM LESSON MODULE 2
General Mathematics – Random Variables
Topic: Expected Value, Variance, and Standard Deviation of Discrete Random Variables
Learning Competency: Calculate the expected value, variance, and standard deviation of
discrete random variables.
I. Introduction / Motivation
In Isabela, farmers, store owners, and families often face decisions involving uncertainty.
Examples:
• How many kilos of corn can we expect to harvest this week?
• What is the average number of customers coming into a sari-sari store?
• How much variation is there in the daily sales of rice?
To analyze such unpredictable outcomes, we use expected value, variance, and standard
deviation.
These mathematical tools help us make informed decisions based on probabilities.
II. Lesson Proper
A. Discrete Random Variables (Review)
A discrete random variable takes countable values (0, 1, 2, 3, …).
Each value has a corresponding probability.
Example:
X = number of typhoons entering Isabela in a month
Possible values: 0, 1, 2, 3, 4…
B. Expected Value (Mean) of a Discrete Random Variable
Formula
𝐸(𝑋) = ∑𝑥𝑃(𝑥)
This means: multiply each value x by its probability P(x), then add them all up.
Interpretation
Expected value = long-term average outcome.
C. Variance and Standard Deviation
Variance
Measures how spread out the values are from the mean.
𝑉𝑎𝑟(𝑋) = ∑(𝑥 − 𝐸(𝑋))2 𝑃(𝑥)
Standard Deviation
Square root of variance:
𝑆𝐷(𝑋) = √𝑉𝑎𝑟(𝑋)
Interpretation
• Low SD → outcomes are close together
• High SD → outcomes vary widely
III. Guided Examples
Example 1: Expected Value
A farmer in Cabagan counts the number of defective corn seeds in a pack of 5.
The probability distribution is:
x
0 1 2 3
(Defective Seeds)
P(x) 0.50 0.30 0.15 0.05
Find the expected number of defective seeds.
Solution
𝐸(𝑋) = 0(0.50) + 1(0.30) + 2(0.15) + 3(0.05)
= 0 + 0.30 + 0.30 + 0.15 = 0.75
Expected value = 0.75 defective seeds per pack
Example 2: Variance and Standard Deviation
Using the same distribution:
Step 1: Compute (𝑥 − 𝐸(𝑋))2
x P(x) x−0.75 (x−0.75)2 (x−0.75)2P(x)
0 0.50 -0.75 0.5625 0.28125
1 0.30 0.25 0.0625 0.01875
2 0.15 1.25 1.5625 0.23438
3 0.05 2.25 5.0625 0.25313
Step 2: Add all last column values:
𝑽𝒂𝒓(𝑿) = 𝟎. 𝟐𝟖𝟏𝟐𝟓 + 𝟎. 𝟎𝟏𝟖𝟕𝟓 + 𝟎. 𝟐𝟑𝟒𝟑𝟖 + 𝟎. 𝟐𝟓𝟑𝟏𝟑 = 𝟎. 𝟕𝟖𝟕𝟓𝟏
Step 3: Square root:
𝑺𝑫(𝑿) = √𝟎. 𝟕𝟖𝟕𝟓𝟏 ≈ 𝟎. 𝟖𝟖𝟕
Variance = 0.788
Standard Deviation = 0.887
Example 3: Contextualized (Isabela)
A rice seller in Ilagan keeps record of the number of customers buying rice on a weekday:
Customers (x) 10 20 30 40
P(x) 0.1 0.3 0.4 0.2
a. Find the expected number of customers.
𝐸(𝑋) = 10(0.1) + 20(0.3) + 30(0.4) + 40(0.2)
= 1 + 6 + 12 + 8 = 27
Expected number of customers = 27
IV. Practice Exercises
A. Solve for Expected Value
1. A call center in Santiago City receives 0–3 calls per minute.
X 0 1 2 3
P(X) 0.20 0.50 0.20 0.10
Find E(X).
2. Number of broken eggs in a tray:
X 0 1 2
P(X) 0.60 0.30 0.10
Find E(X).
B. Solve for Variance and Standard Deviation
3. Number of tractors rented per day:
X 1 2 3
P(X) 0.50 0.30 0.20
Find Var(X) and SD(X).
4. Number of visitors in a Barangay Health Center:
X 5 10 15
P(X) 0.2 0.5 0.3
Find E(X), Var(X), SD(X).
C. Concept Questions (Short Answer)
5. What does the expected value represent?
6. How do we interpret a high standard deviation?
7. Why is it important for farmers or business owners to know the expected value?
8. Which is usually larger: variance or standard deviation? Why?
9. Describe in your own words the meaning of variance.
10. Give a real-life Isabela scenario where variance could be useful.
V. Summary
• The expected value tells the average outcome in the long run.
• The variance measures how spread the values are from the mean.
• The standard deviation is the square root of the variance and indicates the typical spread
of the data.
• These tools help farmers, business owners, and community leaders make better decisions.
VI. Additional Activity (Enrichment)
Mini Project: Analyzing Real-life Data in Your Barangay
1. Choose a situation involving a discrete random variable (e.g., number of tricycles
passing, customers visiting a store, number of pets in each household).
2. Collect data or estimate probabilities.
3. Construct a probability distribution table.
4. Compute:
o Expected value
o Variance
o Standard deviation
5. Write a short interpretation of your findings.