3. DISCRETE RANDOM VARIABLE 3.1 Expected Value of Discrete Random Variables 3.2 The Binomial Random Variable 3.1 Expected Value of Discrete Random Variables • The mean, or expected value, of a discrete random variable x is E ( x) xp( x) 2 • The population variance is defined as a average of the squared distance of x from the population mean . • The variance of random variable x is 2 E[( x 2 )] ( x ) p( x) • The standard deviation of a discrete random variable is equal to the square root of the variance, i.e., to 2 Figure 3a. Shape of two probability distribution for a discrete random variable x 3.2 The Binomial Random Variable 3.2.1 Characteristics of a Binomial Random Variable • • • • • The experiment consist of n identical trials. There are only two possible outcomes on each trial. We will denote one outcomes by S (for Success) and the other by F (for Failure). The probability of S remains the same from trial to trial. This probability is denoted by p, and the probability of F is denoted by q. Note that q=1- p. The trials independent. The binomial random variable x is the number of S’s in n trials. 3.2.2 The Binomial Probability Distribution n x n x p( x) p q x (x = 0, 1, 2, …, n) Where: p = Probability of a success on a single trial q = 1- p n = Number of trials n n! x x!(n x)! The Binomial probability distribution is so named because the probabilities, p(x), x = 0, 1, …,n, are terms of the binomial expansion, (q+p)n. 3.2.3 Mean, Variance and Standard Deviation for a Binomial Random Variable Mean : np Variance : 2 npq Standard : npq Figure 3b. Graph of Binomial Probability distribution or n = 20 and p = 0.6 Figure 3c. The Binomial Probability Distribution for n = 20 and p = 0.6