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RANDOM VARIABLES
Random Variables
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Random Variables
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numbers of something:
Number of earthquakes in Japan in one year
Number of errors in each page of a text book
Number of heads in 1000 coin tosses
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Formal Description
Value (x)
Probability (p(x))
p(2)
Total
p(1)
Distribution function
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Expectation
E(X) xip(xi ).
n
i 1
Examples
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then
E(aX) = aE(X), E(b+X) = b+E(X).
E.g. If $1 = Rs. a, then if expected salary of a PGPX passout
in US$ is $E(X), in Rs. it is Rs.aE(X). Then again, if everyone
is paid a joining bonus $b, salary is $(b+aE(X)).
2. If X and Y are two random variables, then
E(X+Y) = E(X) + E(Y).
E.g. Expected sum of salary of two friends is sum of their
expectations.
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Variance
i1
i 1
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then
V(aX) = a2V(X), V(b+X) = V(X).
2. If X and Y are two independent random variables, then
V(X+Y) = V(X) + V(Y).
Otherwise there will be a cross-term. Lets not bother about
that.
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Examples:
Probability distribution of the number of double heads in
24 throws of two fair dice.
Probability distribution of number of children out of 100
randomly chosen kids of age 10 who have dropped out of
school.
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Binomial(n,p)
n x
n x
P(X=x) = p (1 p) , x = 0, 1, 2, ..., n
x
E(X) = np
Var(X) = np(1-p)
p.m.f.
EXCEL: BINOMDIST(x,n,p,TRUE/FALSE)
c.d.f.
Example
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Example
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Additive Property
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Poisson Distribution
Used to model rare events
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e
P(X=x) =
x
x!
x = 0, 1, 2, ...
E(X) = , Var(X) =
EXCEL: POISSON(x,,TRUE/FALSE)
Example
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Additive Property
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X+Y~Poisson(1+2).
Example
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