Probability Distribution Table
How to find the expected value, variance, and standard deviation from the probability distribution table: formula, 4 examples, and their solutions.
Definition
Definition
This is a probability distribution table.
X: Value for each case
P(X): Probability for each case
Formula
Formula
These are the formulas
to find E(X), V(X), and σ(X).
p1 + p2 + p3 = 1
The sum of the probabilities is 1.
E(X) = x1p1 + x2p2 + x3p3 + ...
Expected Value
V(X) = E(X2) - {E(X)}2
New formula to find the variance V(X)
σ(X) = √V(X)
Standard Deviation
Example 1
Example
Solution
The sum of the probabilities is 1.
So
1/4 + a + 1/3 + 1/6 = 1.
Multiply 12 to both sides.
[1/4]⋅12 = 3
+a⋅12 = +12a
+[1/3]⋅12 = +4
+[1/6]⋅12 = +2
1⋅12 = 12
3 + 4 + 2
= 7 + 2
= 9
Move 9 to the right side.
Then 12a = 3.
Divide both sides by 3.
Then 4a = 1.
Divide both sides by 4.
Then a = 1/4.
So a = 1/4.
Example 2
Example
Solution
You just found that
a = 1/4.
To find the expected value E(X),
multiply X and P(X) for each case,
and add the products.
So
E(X) = (-1)⋅[1/4] + 1⋅[1/4] + 2⋅[1/3] + 3⋅[1/6].
Cancel (-1)⋅[1/4] and +1⋅[1/4].
2⋅[1/3] = 2/3
+3⋅[1/6] = +3/6
2/3 = 4/6
4/6 + 3/6 = 7/6
So E(X) = 7/6.
Example 3
Example
Solution
You found that
a = 1/4 and E(X) = 7/6.
Then find E(X2).
To find E(X2),
first find X2.
Square X values.
(-1)2 = 1
12 = 1
22 = 4
32 = 9
Find E(X2).
Multiply X2 and P(X) for each case,
and add the products.
So
E(X2) = 1⋅[1/4] + 1⋅[1/4] + 4⋅[1/3] + 9⋅[1/6].
1⋅[1/4] = 1/4
+1⋅[1/4] = +1/4
+4⋅[1/3] = +4/3
+9⋅[1/6] = +9/6 = +3/2
The least common multiple of the denominators,
4, 3, 2,
is 12.
So, to add and subtract these fractions,
change the denominators to 12.
[1/4]⋅[3/3] = 3/12
+[1/4]⋅[3/3] = +3/12
+[4/3]⋅[4/4] = +16/12
+[3/2]⋅[6/6] = +18/12
3 + 3 = 6
16 + 18 = 34
6 + 34 = 40
Reduce 40 to, 40/4, 10
and reduce 12 to, 12/4, 3.
E(X) = 7/6
E(X2) = 10/3
So
V(X) = 10/3 - (7/6)2.
-(7/6)2
= -[72/62]
= -[49/36]
10/3 = 120/36
120 - 49 = 71
So V(X) = 71/36.
Example 4
Example
Solution
You found that
V(X) = 71/36.
Then σ(X) = √71/36.
√71/36 = √71/√36
Divide Radicals
√36
= √62
= 6
Square Root
So σ(X) = √71/6.