Lesson Four Computing the Variance of a Discrete Probability Distribution

Lesson Objectives:
At the end of this lesson, you should be able to:
 Illustrate and calculate the variance of a discrete random variable;
 Interpret the variance of a discrete random variable; and
 Solve problems involving variance of probability distributions.

Starting Point
ENTRY CARD
Compute the variance of this frequency distribution.
Score Number of Students
5 3
8 5
10 4
12 5
15 3
Steps Solution
1. Compute the mean by using the Score Number of Students fX
∑ fX X f
5 3
formula X = n .
8 5
10 4
12 5
15 3
n = 20 ƩfX =

2. Subtract the mean from each X f X -X X )2

(X -
score. Square the results.
5 3
8 5
10 4
12 5
15 3
n = 20

3. Multiply the results by the X f X - X X )2 X )2

(X - f( X -
corresponding frequency. Add
5 3
the results in the f( X - X )2 8 5
column. 10 4
12 5
15 3
n = 20 Ʃf( X - X )2=
4. Compute the variance using the
formula

σ 2=
∑ f ( X− X )2
n
To get the standard deviation,
get the square root of the
variance.

Getting Ready
The variance and standard deviation describe the amount of spread, dispersion, or variability of the items in a
distribution. How do you describe the spread or dispersion in a probability distribution? This lesson will teach us how to
compute the variance and the standard deviation of a discrete probability distribution.
In-class Activity 1 Number of Cars Sold
The number of cars sold per day at a local car dealership, along with its corresponding probabilities, is shown in
the succeeding table. Compute the variance and the standard deviation of the probability distribution by following the
given steps.
Number of Cars Sold X Probability P(X)
0 1/10
1 2/10
2 3/10
3 2/10
4 2/10

Steps in Finding the Variance and Standard Deviation

1. Find the mean of the probability distribution.
2. Subtract the mean from each value of the random variable X.
3. Square the results obtained in Step 2.
4. Multiply the results obtained in Step 3 by the corresponding probability.
5. Get the sum of the results obtained in Step 4.
Solution:
Steps Solution
1. Find the mean of the probability distribution Numbers of Cars Probability X⋅P ( X )
using the formula Sold X P(X)
μ=∑ X⋅P( X ) 0 1/10
1 2/10
2 3/10
3 2/10
4 2/10
μ=∑ X⋅P( X ) =
2. Subtract the mean from each value of the X P(X) X . P(X) X-µ
random variable X. 0 1/10
1 2/10
2 3/10
3 2/10
4 2/10

3. Square the results obtained in Step 2. X P(X) X . P(X) X-µ (X-µ)2

0 1/10
1 2/10
2 3/10
3 2/10
4 2/10

4. Multiply the results obtained in Step 3 by the X P(X) X . P(X) X-µ (X-µ)2 (X-µ)2. P(X)
corresponding probability. 0 1/10
1 2/10
2 3/10
3 2/10
4 2/10

5. Get the sum of the results obtained in Step X P(X) X . P(X) X-µ (X-µ)2 (X-µ)2. P(X)
4. The result is the value of the variance. So, 0 1/10
the formula for the variance is: 1 2/10
σ 2=∑ ( X −μ )2⋅P ( X ) . 2 3/10
3 2/10
4 2/10
σ 2=

6. Get the square root of the variance to get The variance of the probability distribution is _____.
the standard deviation. The standard deviation is _____.
 Formula for the Variance and Standard Deviation of a Discrete
Probability Distribution
The variance of a discrete probability distribution is given by the formula:

σ 2=∑ ( X −μ )2⋅P ( X )
The standard deviation of a discrete probability distribution is given by the formula:

where:
σ= √∑ ( X −μ) ⋅P( X )
2

X = value of the random variable

P(X) = probability of the random variable X
μ = mean of the probability distribution

The variance and standard deviation can be obtained using a shorter formula and procedure.

Alternative Procedure in Finding the Variance and Standard Deviation of a Probability Distribution
1. Find the mean of the probability distribution.
2. Multiply the square of the value of the random variable X by its corresponding probability.
3. Get the sum of the results obtained in Step 2.
4. Subtract the mean from the results obtained in Step 3.
Steps Solution
1. Find the mean of the probability distribution Numbers of Cars Probability X⋅P ( X )
using the formula Sold X P(X)
∑
μ= X⋅P( X ) 0
1
1/10
2/10
2 3/10
3 2/10
4 2/10
μ=∑ X⋅P( X ) =
2. Multiply the square of the value of the X P(X) X . P(X) X2.P(X)
random variable X by its corresponding 0 1/10
probability. 1 2/10
2 3/10
3 2/10
4 2/10

3. Get the sum of the results obtained in Step X P(X) X . P(X) X2.P(X)
2. 0 1/10
1 2/10
2 3/10
3 2/10
4 2/10
μ=∑ X 2⋅P ( X ) =

4. Subtract the square of the mean from the The variance is:
results obtained in Step 3 to get the
variance. So, the formula for the variance of
a probability distribution is
The standard deviation is:
_________________________________
In-Class Activity 2 Number of Heads

When three coins are tossed, the probability distribution for the random variable X representing the number of
heads that occur is given below. Compute the variance and standard deviation of the probability distribution.
Number of Heads X Probability P(X)
0 1/8
1 3/8
2 3/8
3 1/8
Solution:

In-Class Activity 3 Number of Items Sold

The number of items sold per day at a retail store, with its corresponding probabilities, is shown in the table. Find the
variance and standard deviation of the probability distribution.

Number of Items Sold X Probability P(X)

19 1/8
20 3/8
21 6/8
22 3/8
23
Worksheet # 4
Name: _____________________________________________________________ Date: ____________________
Complete the table below and find the variance and standard deviation of the following probability distributions.
X P(X) X . P(X) X2 . P(X) Solution:
1 1/7
6 1/7
11 1/7
16 2/7
21 2/7

X P(X) X . P(X) X2 . P(X)

1 3/10
2 1/10
3 2/10
4 2/10
25 2/10

X P(X) X . P(X) X2 . P(X)

3 0.15
6 0.35
8 0.40
10 0.10

X P(X) X . P(X) X2 . P(X)

1 4/9
3 2/9
5 1/9
7 2/9

Solution:

Solution:

Solution:

X P(X) X . P(X) X2 . P(X) Solution:

2 0.10
4 0.23
6 0.25
8 0.36
10 0.06

B. Do the following.
1. Find the variance and standard deviation of the probability distribution of the random variable X, which can take only
the values 1, 2, and 3, given that P(1) = 10/33, P(2) = 1/3, and P(3) = 12/33.

2. Find the variance and standard deviation of the probability distribution of the random variable X, which can take only
the values 3, 5, and 7, given that P(3) = 7/30, P(5) = 1/3, and P(7) = 13/30.

3. Find the variance and standard deviation of the probability distribution of the random variable X, which can only take
the values 2, 4, 5 and 9, given that P(2) = 9/20, P(4) = 1/20, P(5) = 1/5, and P(3) = 3/10.
4. Find the variance and standard deviation of the probability distribution of the random variable X if 1/10 for X = 1, 2, 3,
….10.
x+1
P( X )=
5. Find the variance and standard deviation of the probability distribution of the random variable X if 20 for X
= 1, 2, 3, 4, and 5.

C. Solve the following problems.

1. The probabilities of a machine manufacturing 0, 1, 2, 3, 4, or 5 defective parts in one day are 0.75, 0.17, 0.04, 0.025,
0.01, and 0.005, respectively. Find the variance and standard deviation of the probability distribution.
2. The number of computers sold per day at a local computer store, along with its corresponding probabilities, is shown
in the table. Find the variance and standard deviation of the distribution.
Number of Computers Sold X Probability P(X)
0 0.1
1 0.2
2 0.3
3 0.2
4 0.2

3. The number of inquiries received per day by the Office of Admissions in a certain university is shown below. Find the
variance and standard deviation.

Number of Inquiries X Probability P(X)

22 0.08
23 0.19
24 0.36
25 0.25
26 0.07

Look Back and Reflect

 What are the steps in computing the variance and standard deviation of a probability distribution of a random
variable? _________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
 How is it similar to the procedure in finding the variance and standard deviation of a frequency distribution?
___________________________________________________________________________________________
___________________________________________________________________________________________
 Compare the formulas for finding the variance and standard deviation of a frequency distribution and that of a
probability distribution. _______________________________________________________________________
___________________________________________________________________________________________
 What does the variance and standard deviation of a probability distribution tell us? _______________________
___________________________________________________________________________________________
 Which formula is easier to use in finding the variance and standard deviation of a probability distribution?
___________________________________________________________________________________________