A random variable is just a number that depends on chance — like the sum of two dice or the number of heads in 3 coin flips. The expected value E(X) is the long-run average: if you repeated the experiment thousands of times, the average result would approach $E(X)$. It's a weighted average where each outcome is weighted by its probability. The variance measures how far outcomes tend to spread from that average. Think of it this way: expected value tells you what to "expect on average," and standard deviation tells you "how surprised you might be." For a linear transformation: $E(aX+b) = aE(X)+b$ and $Var(aX+b) = a^2 Var(X)$.
Let $X=0,1,2,3$ with probabilities $0.10,0.30,0.40,0.20$. Find $E(X)$.
$$E(X)=0(0.10)+1(0.30)+2(0.40)+3(0.20)=1.70$$
Final answer: 1.70.
Variance of a Discrete Variable
For $X=1,2,3$ with probabilities $0.2,0.5,0.3$, find the variance.
$$E(X)=1(0.2)+2(0.5)+3(0.3)=2.1$$
$$E(X^2)=1(0.2)+4(0.5)+9(0.3)=4.9$$
$$Var(X)=4.9-(2.1)^2=0.49$$
Expected Profit
A project earns P80,000 with probability 0.35, P20,000 with probability 0.45, and loses P30,000 with probability 0.20. Find expected profit.
$$E=80000(0.35)+20000(0.45)-30000(0.20)=31,000$$
Final answer: P31,000.
Lottery Expected Value
A lottery ticket costs P50. The prize is P10,000 with probability 0.002 and P500 with probability 0.010. All other outcomes win nothing. Is the ticket a good buy?
Compute expected winnings (not including ticket cost):
Additional board-style practice items for this topic.
Question Bank: q692
MSTE - Statistics and Probability / Probability / Engr. Janclyde Espinosa (Clidez)
If 2 marbles are removed at random from a bag containing black and white marbles, the chance that they are both white is 1/3.
If 3 are removed at random, the chance that all are white is 1/6.
How many black balls are there?
4
6
5
7
Let there be $w$ white and $b$ black marbles. Given: $\frac{w(w-1)}{(w+b)(w+b-1)}=\frac{1}{3}$ $\frac{w(w-1)(w-2)}{(w+b)(w+b-1)(w+b-2)}=\frac{1}{6}$ Dividing the second equation by the first gives: $\frac{w-2}{w+b-2}=\frac{1}{2}$, so $b=w-2$. Substitution gives $w=6$, hence $b=4$. $\boxed{4}$
Question Bank: q722
MSTE - Statistics and Probability / Probability / Engr. Janclyde Espinosa (Clidez)
A flower shop has:
2 tulips,
2 roses,
2 daisies, and
2 lilies
If two flowers are sold at random, what is the probability of not picking exactly two tulips?
27/28
1/8
1/7
7/8
There are 8 flowers total. Probability of exactly two tulips is: $\frac{\binom{2}{2}}{\binom{8}{2}}=\frac{1}{28}$ Probability of not exactly two tulips: $1-\frac{1}{28}=\frac{27}{28}$ $\boxed{27/28}$
Question Bank: t2144
MSTE - Statistics and Probability / Probability / Besavilla CE Pre-Board Math & Surveying
In a batch of 45 lamps there are 10 faulty lamps. If one lamp is drawn at random, find the probability of it being satisfactory.