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Lecture #13 - Module 4-4

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14 views

Lecture #13 - Module 4-4

Statistic 151 notes

Uploaded by

ynt6cfkc5n
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Module 4-4 (Chapter 13):

Part II – Linear Combinations of Random variables

By the end of this chapter, you should be able to calculate mean, variance
and standard deviation of discrete random variables. In addition, you should
be able to find mean and variance of a linear combination of random
variables. In fact, we will talk about of following topics in this chapter:

 Random variables,

 Discrete random variables,

 Continuous random variables,

 How to calculate mean of a discrete random variable,

 How to calculate variance and standard deviation of a discrete random


variable,

 How to calculate mean of a linear combination of random variables,

 How to calculate variance and standard deviation of a linear


combination of random variables.

Previously we saw that shifting data shifts the mean but not the standard
deviation or variance. We also saw that scaling the data by a common
(positive) factor scales both the mean and the standard deviation by the
factor. The same is true for random variables.
Note:

 For any constant c and random Variable X, we have:

E(X c )=E(X) c and V (X c)=V (X)


E(aX)=a E(X) and SD(a X)=|a| SD(X) ↔ V (aX)= a2 V (X)

Example 1: Suppose a random variable X has a mean of 5 and a standard


deviation of 3. Find the following means and standard deviations:

(a) E(-1.6) (b) SD(-1.6) (c) V(-1.6)

(d) E(X-1.6) (e) SD(X-1.6) (f) V(X-1.6)

(g) E(-2X) (h) SD(-2X) (i) V(-2X)


Note:

 For any constant c and random Variable X, we have:

E(X c )=E(X) c and V (X c)=V (X)


E(aX)=a E(X) and SD(a X)=|a| SD(X) ↔ V (aX)= a2 V (X)

 In general, for any constants a and c, we have:

E(aX c )=a E(X) c


and
SD(a X c)=|a| SD(X) ↔ V (aX c)= a2V (X)

Example 1 (Cont.): Suppose a random variable X has a mean of 5 and a


standard deviation of 3. Find the following means and standard deviations:

(j) E(-2X-1.6)

(k) SD(-2X-1.6)

(l) V(-2X-1.6)
Note:

 For any two random variables X and Y and constants a, b, and c, we have

a) E[a X  b Y  c]  aE  X   b E Y   c

b) V[a X  b Y  c]  a 2 V  X   b 2 V Y  , if X and Y are independent.

 Warning: In general

SD(a X b Y ) ≠ a SD(X) b SD(Y )

Example 2: Suppose means and standard deviations of two random


variables X and Y are given by:

 X  2,  X  3, Y  4 and  Y  5

Find mean and standard deviation of W =2X+5Y-3.


.
Example 3: Suppose the results of the midterm in a certain class were low
and had a small spread, that is, the average was 57 and the variance was 25
(marks in percentages). The instructor standardizes these by performing a
linear transformation on the midterm scores using the formula Y1 = 1.4X1.
However, the results of the final exam were even lower and also had small
spread, with the average being 48 and the variance being 32. To these, he
applies the linear transformation Y2 = 1.2X2 + 20. The instructor then
combines these results into overall marks that are weighted 30% on the
midterm and 70% on the final. Let Y be the overall mark. Then

Y = 0.3Y1 + 0.7Y2 = (0.3)(1.4)X1 + (0.7)(1.2)X2 + (0.7)(20)


= 0.42 X1 + 0.84X2 + 14

(a) Calculate the overall average mark for the class.

Solution: Since Y is a linear combination of X1 and X2, we have

Y  0.42 X 1  0.84 X 2  14
 Y  0.42 X1  0.84 X 2  14
 0.42(57)  0.84(48)  14  78.26
(b) Assume that the midterm and the final exams cover very different topics
and thus X1 and X2 are independent. What is the variance of the overall
marks?

Solution: Since Y is a linear combination of two independent random


variables X1 and X2, we have

Y  0.42 X 1  0.84 X 2  14
 V (Y )  0.422 V ( X 1 )  0.842 V ( X 2 )  V (14)
 0.422 (25)  0.842 (32)  0  26.989
Example 4: A grocery supplier believes that in a dozen eggs, the mean
number of broken ones is 0.6 with a standard deviation of 0.5 eggs. You buy
3 dozen eggs without checking them. Assume independency if it is
necessary. What are the mean and the standard deviation of the number of
broken eggs?
Review 5: A delivery company's trucks occasionally get parking tickets.
Based on past experience, the company expects that the trucks will average
1.3 tickets per month with a standard deviation 0.7 ticket. If they have 18
trucks, what are the mean and standard deviation of the total number of
parking tickets per month?

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