Statistics and

Probability
Quarter 3 – Module 9:
Solving Problems Involving Mean
and Variance of Probability
Distributions
Statistics and Probability - Grade 11
Alternative Delivery Mode
Quarter 3 – Module 9: Solving Problems Involving Mean and Variance of Probability
Distributions
First Edition, 2020

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 Statistics and
Probability
Quarter 3 – Module 9:
Solving Problems Involving Mean
and Variance of Probability
Distributions
Introductory Message
For the facilitator:

Welcome to the Statistics and Probability for Senior High School Alternative
Delivery Mode (ADM) Module on Solving Problems Involving Mean and Variance of
Probability Distributions!

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the
learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

For the learner:

ii
Welcome to the Statistics and Probability for Senior High School Alternative
Delivery Mode (ADM) Module on Solving Problems Involving Mean and Variance of
Probability Distributions!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action, and purpose. Through our hands, we may learn, create, and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

This will give you an idea of the skills or

What I Need to
Know competencies you are expected to learn in
the module.
This part includes an activity that aims to
What I Know check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
This is a brief drill or review to help you link
What’s In the current lesson with the previous one.

In this portion, the new lesson will be

What’s New introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.
This section provides a brief discussion of
What is It the lesson. This aims to help you discover
and understand new concepts and skills.
This comprises activities for independent
What’s More practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
This includes questions or blank
What I Have
Learned sentence/paragraph to be filled in to process
what you learned from the lesson.
This section provides an activity which will
What I Can Do help you transfer your new knowledge or
skill into real life situations or concerns.
This is a task which aims to evaluate your
Assessment level of mastery in achieving the learning

iii
 competency.

In this portion, another activity will be given

Additional Activities to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.
Answer Key This contains answers to all activities in the
module.
At the end of this module you will also find:

References This is a list of all sources used in

developing this module.
The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

iv
 What I Need to Know

This module was intended and written focusing on learners like you. It is here to
help you apply the mean or expected value of the discrete random variable or the
average value when the experiment is repeated many times to real-life situations
such as taking a chance in a raffle, making a bet in games of chance and
considering an insurance policy. It is hoped that this module will help you to make
decisions whether or not to participate in games of chances like lotteries, raffle
draws, and gambling.
In this module, you will learn how to compute the probability or the chance of
winning and losing. Your knowledge and skill on how to use the formula for the
mean and variance that you learned from previous modules are important, for you
to solve real-life problems involving the mean and variance of probability
distributions. Good luck and happy learning.

After going through this module, you are expected to:

1. calculate the mean and the variance of a discrete random variable;
2. solve real-life problems involving mean and variance of probability
distributions; and
3. interpret the expected value of a discrete random variable.

1
 What I Know

Before studying this module, take this test to determine what you already know
about the topic covered.
Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. Which of the following represents the mean value of a discrete random variable?
A. Expected value C. Standard deviation
B. Median D. Variance

For numbers 2-3, refer to the table below:

x 2 4 6 8
P( x ) 0.12 0.29 0.24 0.35

2. Which of the following is the correct formula to find the expected value of the
probability distribution?
A. E ( x )=∑ [x ∙ P ( x ) ] C. E ( x )=∑ [x ¿¿ 2 ∙ P( x )]−u ¿
2

B. E ( x )=∑ [ x 2 ∙ P ( x ) ] D. E ( x )= √∑ [ x ¿ ¿ 2∙ P( x)]−u ¿
2

3. What is the mean or the expected value of the given probability distribution?
A. 4.85 B. 5.64 C. 6.32 D. 7.12

For numbers 4-6, refer to the following:

You buy one ₱500.00 raffle ticket for a prize of new Toyota Wigo car valued at
₱675, 000.00. Two thousand tickets are sold.

4. What is the probability that you will win the prize?

1 1 1
A. 1 B. C. D.
500 2000 675000

5. If X denotes the net gain from the purchase of a randomly selected ticket.
Which of the following tables of values shows the probability distribution
of X?
A. x 675,000 -500 C. x 674,500 -500
P(x) 1 1999 P(x) 1 1999
2000 2000 2000 2000

x 675,000 500 x 674,500 500

B. V P(x) 1 1999 D. P(x) 1 1999
2000 2000 2000 2000

2
6. What is the mean or the expected value for those who will buy the tickets?
A. -162.50 B. -162.25 C. 162.25 D. 162.50

For numbers 7-8, refer to the following:

One thousand tickets are sold for ₱10.00 each. One ticket will win ₱2,000.00, two
tickets will win ₱1,000.00 each and four tickets will win ₱500.00 each.

7. What is the probability of winning any amount in the purchase of two tickets?
1 2 5 7
A. B. C. D.
1000 1000 1000 1000

8. What is the probability of losing in the purchase of two tickets?

2 500 998 999
A. B. C. D.
1000 1000 1000 1000

For numbers 9-11, refer to the following:

A roulette wheel in a fiesta carnival has the numbers 1 through 50. If you bet ₱5.00,
you will have a chance to win a kitchen utensil worth ₱200.00.

9. If X denotes the net gain from taking a chance to bet on a randomly selected
number. Which of the following tables of values shows the probability
distribution of X?
A. x 195 -5 C.
x 50 -5
P(x) 1 49 P(x) 1 199
50 50 200 200
B. x 5 -5 D. x 200 5
P(x) 1 4 P(x) 1 5
5 5 200 200

10. What is the mean or the expected value for those who take a bet?
A. – 1.8 B. -1 C. -0.95 D. -0.5

11. How much the organizer will earn if 100 games will be played such that each
number has a bet of ₱5.00?
A. ₱2,000.00 B. ₱3,000.00 C. ₱4,000.00 D. ₱5,000.00

For items 12-13, refer to the following:

Good Hands is a car insurance company who offers to pay ₱600,000.00 if a car is
destroyed beyond repair due to an accident. This insurance policy cost ₱25,000.00
per year and the probability that the company will need to pay the amount of
insurance is 0.003.

3
12. What is the probability that the company will NOT pay any amount to its
client within a year?
A. 0.003 B. 0.250 C. 0.500 D. 0.997
13. What is the expected value of the insurance to its buyer?
A. Each policyholder expects to lose ₱20,000.00 every year.
B. Each policyholder expects to lose ₱22,500.00 every year.
C. Each policyholder expects to lose ₱23,200.00 every year.
D. Each policyholder expects to lose ₱25,000.00 every year

For items 14 to 15, refer to the following:

A life insurance company will sell a ₱500,000.00 five-year term life insurance
policy exclusive for police enforcers for a premium of ₱1,000.00. The chance that a
police enforcer will survive in 5 years is 99.95%.

14. What is the probability that a police enforcer will NOT survive in five-
years?
A. 0.05
B. 0.005
C. 0.005
D. 0.0005

15. What is the expected value to the company of a single policy?

A. ₱550.00
B. ₱650.00
C. ₱750.00
D. ₱850.00

4
 Lesson Solving Problems Involving Mean and Variance of Probability
1 Distributions

Are you interested in buying lotto tickets? How about making a bet in a
roulette wheel or taking a chance in raffle tickets? Do you want to know how much
gain will you have if you will win in games of chance or how much money will be
wasted if you lost on a bet? Are you planning to invest money in a life insurance
company? If you had thought of the following questions this lesson is for you.
What’s In
For you to begin let us recall first the previous lessons which are very
important for you to succeed. From your last module, you learned that the
expected value or mean value of a discrete random variable, denoted by x, is
computed by first multiplying each possible x value by the probability of observing
that value and then adding the resulting quantities.
Symbolically,
E ( x )=u x =∑ [ x i ∙ P(x i) ] .
where:
x i is the value of the random variable for the outcome i ;
P( x i)  is the probability that a random variable will have an outcome i ;
u x is the mean of a random variable x ; and
E ( x ) is the expected value of random variable x .

Also, you already learned the equation for computing the variance of a discrete
random variable. To find the variance, remember the formula:
σ =∑ ¿ ¿
2

which can be simplified as

σ =[ ∑ x ∙ P( x) ]−u
2 2 2

where:
x  is the square value of a discrete random variable x ;
2

P( x ) is the probability of an outcome of a discrete random variable;

u2 is the square of the mean of a discrete random variable; and
2
σ is the variance of a discrete random variable

Moreover, the standard deviation σ , of a discrete random variable X is the square

root of its variance, hence the formula is:

σ =√ ∑ ¿ ¿ ¿ or σ = √ [ ∑ x ∙ P(x)] −u
2 2

The variance and standard deviation of a discrete random variable X may be

interpreted as measures of variability of the values assumed by the random
variable in repeated trials of the experiment.

Before you proceed to the next lesson, study the example below, and reflect
whether you are now ready to proceed to the new lesson.

5
Example
The table below shows the probability distribution of the number of girls in a family
of three children in Barangay Maligaya. Calculate the mean and variance of the
random variable with the given probability distribution.
Outcome or GBB,BGB, GGB, GBG,
BBB GGG
Sample Point BBG BGG
x 0 1 2 3
P( x ) 1/8 3/8 3/8 1/8
Solution:
Finding the mean of the discrete random variable:
E ( x )=u x =∑ [ x i ∙ P( x i) ]

[ ( ) ( ) ( ) ( )]
E ( x )=u x = 0 ∙
1
8
3 3
+ 1∙ + 2∙ + 3∙
8 8
1
8

[ ( ) ( ) ( )]
3
E ( x )=u x = ( 0 )+
8
+
6
8
+
3
8
12 3
E ( x )=u x = = =1.5
8 2
Therefore, the mean or the expected value of the discrete random variable is 1.5.

To find the variance and standard deviation of the discrete random variable you
need to prepare a table like the one below.
2
x P( x ) x2 x ∙ P( x)
1
0 0 0
8
3 3
1 1
8 8
3 12 3
2 4 ∨
8 8 2
1 9
3 9
8 8
From the table, the variance and standard deviation can be computed using:

3 12 9 24
∑ x 2 ∙ P ( x )=0+ 8 + 8 + 8 = 8 =3
σ =[ ∑ x ∙ P( x) ]−u =3−¿
2 2 2

σ =√ σ = √ 0.75=0.87
2

Therefore, the variance of the discrete random variable is 0.75, while the
standard deviation is 0.87.

Notes to the Teacher

Tell to the students that using calculator is okay because it helps them to save time in
solving the problems. Remind them that the most important is they should be able to
know how to use the formulas to find the correct answer. Use of calculator is just an
aid to make their work easier. Inform them also that in other books the formula for
mean or expected value is E ( x )=u x = ∑ [ x ∙ P(x) ]
Likewise, introduce to the students the Greek letters Σ (uppercase sigma) and μ
6 Σ is read as “summation” while μ is read
(lowercase mu) and the proper way to read it.
as “mean” in statistics.
 What’s New

GAME OF CHANCE

Read the conversation below and answer the questions that follow.

Oh no! I do understand but if

Our television set is no
Hey Romulo I longer functional and I
Ok, so what’s need to buy a new one.
have a problem.
your problem But the problem is I don’t
my friend? have enough budget for
that.
you want to take a chance I
have here 5 raffle tickets out
of 1000 released tickets which
cost ₱100.00 each. If you will
be lucky enough, you’ll get a
32-inch LED Television worth
₱15,000.00.

That’s a good deal and the prize

is so exciting! But I need to
check my budget before buying a
ticket. Thanks for informing me.
It will be 10 days from now.
I’ll just call you when I am ready
You still have time to decide,
to buy. By the way, when is the Thank you
just call me if you already You’re welcome Cardo!
raffle date? Romulo!
have your decision.

7
Questions:

1. If you are Cardo, would you buy a raffle ticket? Why?

_______________________________________________________________
2. If Cardo decided to buy five tickets, what is the probability that he would
win the prize if 1000 tickets were sold? ____________________________
What is the probability that Cardo will lose the bet? __________________
3. How much money will Cardo gain if he wins the prize?________________
4. How much money will be wasted if he will not win the prize and he buy
one ticket?___________________________________________________________
5. What if 1000 tickets were purchased by different individuals, what is the
expected value of buying one ticket?___________________________________
6. How would you describe Romulo as a friend?___________________________

What is It

To answer question 1 in the previous activity, you have to understand first

the consequences of buying a ticket, will it give you advantages and disadvantages?
Can you afford to spend extra money to buy a ticket?
Look at this way, if you will buy a ticket you will have a chance to win the
prize worth ₱15,000.00 if you are lucky enough it is good for you. But on the other
hand, what if you are not lucky, then you will lose ₱500.00 for buying the five
tickets. Considering this amount (₱500.00), you are aware that you can buy more
essential needs like foods, school and medical supplies, and other miscellaneous
needs with this amount rather than using it to buy tickets. However, if you
allocated extra money for other unexpected expenses, buying a ticket is not bad at
all. The point of making the right decision is not difficult if you know how to
consider what is more important.
If you are Cardo, you need to understand the given details on the situation
for you to make the right decision. If you will win the prize, your net gain is
₱15,000.00 less ₱500.00 (amount spend for buying 5 tickets) or ₱14,500.00. The
5
probability that you will win the prize is five out of one thousand tickets or .
1000
But if you decide to buy one ticket only, then your net gain is ₱15,000.00 less
₱100.00 (amount spend for buying 1 ticket) or ₱14,900.00 and the probability that
1
you will win the prize is one out of one thousand tickets or . The more tickets
1000
you buy, the more chances of winning. However, your chance of losing is higher
than your chance of winning because it is equal to 1 less than the probability of
995
winning if you buy five tickets the probability that you will not win the prize is
1000
999
or 0.995 while if you buy one ticket only, the probability is or 0.999.
1000
What if 1000 tickets were purchased by different individuals, what is the
expected value of buying one ticket? To answer this question, you need to apply the
formula for the mean or expected value of the discrete probability distributions

8
which is equal to E ( x )=u x =∑ [ x i ∙ P( x i) ] . The expected value is also defined as the
average value of a random variable over numerous trials of an experiment. The
table below is the probability distribution of the given situation.

x 14, 900 -100

P( x ) 1 999
∨0.001 ∨0.999
1000 1000

Using the formula of expected value,

E ( x )=( 14,900 ) ( 0.001 )+(−100)(0.999)

E ( x )=−85
The negative value means that one loses money on the average. In
particular, someone who buy tickets, and although has a chance to win losses
₱85.00 per ticket purchased.
Having this knowledge, you can now make a wise decision, but remember
important things should be prioritized, if you can afford to buy tickets without
sacrificing your essential needs it is okay to take a chance sometimes. You should
also consider saving money for future use, because not every day you have enough
funds, having extra money would be a great help in times of need.
Meanwhile, having a friend like Romulo who are ready to help you or to
advise you in time of need is a precious one. He is a kind of friend who does not
insist on what he wants but let his friend decide on his own after giving a piece of
advice. You are blessed if you will find a true friend that you can rely on. Having a
true friend is wealth.

9
 What’s More

In the following activities, read each situation carefully to solve each problem. Write
your answer on a separate sheet of paper.

Practice Activity 1

Raffle Tickets Problem

Senior citizens of a particular barangay organize a Christmas raffle bonanza.

One thousand raffle tickets are sold for ₱50.00 each. Each one has an equal chance
of winning. The first prize is a 32-inch LED TV worth ₱10,000.00, the second prize
is an electric oven worth ₱5,000.00 and the third prize is a grocery pack worth
₱2,500.00. Let X denote the net gain from the purchase of one ticket.

a. Complete the table below showing the probability distribution of X.

x 9,950 4,950 2,450 -50

P( x )

b. Find the probability of winning any amount in the purchase of one ticket.
Let P(W ) the probability of winning any amount

P ( W ) =¿ ¿
P ( W ) =¿ ¿
c. Find the expected value of X, then interpret.

The expected value is equal to the product of net gain and the
probability of winning (in this case you have three chances of winning,
you may win the first, second, or third prize) plus the product of net loss
and the probability of losing.

E ( x )=¿ ¿

Interpretation:__________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________

10
Independent Assessment 1

Raffle for a Cause

A raffle is held to raise funds for a charity event. A raffle ticket costs ₱150.00
and there are two thousand tickets to be sold. Only one ticket holder will win a
prize of ₱150, 000. 00. Construct the probability distribution of the discrete
random variable, compute for the expected value, and interpret the result.

Practice Activity 2

Game of Chance Problem (A Roulette Wheel)

A roulette wheel in a fiesta carnival has the numbers 1 through 30. If you
bet ₱5.00 you will have a chance to win a prepaid load worth ₱100.00. Let X denote
the net gain for a bet.

a. Complete the table below showing the probability distribution of X.

x 95 -5
P( x )

b. Find the expectation if you play a bet and interpret the result.

E ( x )=¿ ¿

Interpretation:__________________________________________________________
________________________________________________________________________
______________________________________________________

c. How much the organizer will earn if 100 games will be played such that each
number has a bet of ₱5.00? ____________________________
(Hint: Compute for the net gain of the organizer per game and multiply it
by 100)
Independent Assessment 2

Colored Wheel
A roulette wheel is divided into eight colors blue, red, yellow, green, orange,
violet, black, and white. Each time roulette is spun, you can have a bet of ₱10.00. If
the outcome is either black, blue, or violet you will lose the bet. But if the outcome
is red or yellow, your money will be doubled (you will win additional ₱10.00 plus
your bet), and if it is green or orange you will win nothing and your bet will be given
to you. But if the result is white, your money will be tripled (you will win an
additional ₱20.00 plus your bet. If X denotes the net gain of a player what is the
expected value of a ₱10.00 bet?

11
Practice Activity 3

Insurance Investment Problem

A life insurance company will sell a ₱250,000.00 one-year term life insurance
policy for members of armed forces of the Philippines for a premium of ₱500.00.
Let X denote the net gain from the insurance company. Based on the collected data
of the company, a member of the armed forces police has a 99.96% chance of
surviving within one year. Let X the net gain of an insurance company from a single
policyholder.

a. Complete the table below showing the probability distribution of X.

x 500 -249,500
P( x )
b. Find the expectation if you play a bet and interpret the result.

E ( x )=¿ ¿

Interpretation:_____________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Independent Assessment 3

Body Parts Insurance

An insurance company will sell a ₱500,000.00 one-year term leg insurance
policy for ramp models for a premium of ₱1,000.00. Find the expected value to the
company of a single policy if a model has a 99.97% chance of being uninjured in
one year?

Compare your answers with those found in the Answer Key on the last part
of this module. Did you get all items correct? Great! If you did, you learned the
lesson well. If you were not able to get the correct answer, review your
computations.

12
 What I Have Learned

A. Complete the following statements by writing the correct word or words and
formulas.
1. The mean of a discrete random variable X is also called the _________________.
2. The expected value is the _______________ value of a random variable over
numerous trials of an experiment.
3. The formula to find the mean or expected value of a discrete random variable is
___________________.
4. The _________________ and __________________ of a discrete random variable X
indicate the variability of X over a large number of experiments or trials.
B. In your own words, write the different steps on how you can solve real-life
problems involving mean or expected value.

_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
____________________________________________________________

What I Can Do

Raffle for a Cause!

Things to do:

Make a plan for a Christmas raffle bonanza in which the PWD (Person with
Disability) will be the beneficiaries. The plan should consist of the number of
tickets to be sold, the amount per ticket, and the number of winners and their
corresponding prizes. Let X be the random variable representing your net gain per
ticket, and compute the expected value of X and the net gain if all tickets will be
sold out. Also, using your creativity prepare a sample of your ticket. You may use
the sample guide to complete your task.

13
 Name of Project

Brief Description

Number of tickets to be sold

Price of ticket to be sold

Winners and prizes:

Expected Value of X:

(Please show the probability

distributions and your solution)
Net Gain of the Project:

Sample Ticket:

Rubrics for the task:

Categories 4 3 2 1
Excellent Satisfactory Developing Beginning

Organization of The name of the The name of the The name of the The name of the
Plan project is project is project is project is not
appropriate and somewhat somewhat appropriate and
with clear appropriate and appropriate and with vague
descriptions of with clear vague descriptions of
the project. descriptions of descriptions of the project.
the project. the project.

Accuracy of the The There is one There is one There are more
Solutions computations mistake in the mistake in the mistakes with no
are accurate computations computations table of
with a table of with a table of with no table of probability
probability probability probability distributions.
distributions. distributions. distributions.

Originality and Sample Ticket is Sample Ticket is Sample Ticket is Sample Ticket is
creativity (Sample unique and nice but not just ordinary just an ordinary
Ticket) shows creativity unique and with with complete and without
with complete complete information. complete
information. information. information.

14
 Assessment

Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. Which of the following represents the expected value of the discrete random
variable?
A. mean C. mode
B. median D. variance

For numbers 2-3, refer to the table below:

x 1 2 3 4
P( x ) 1 3 2 1
5 10 5 10

2. What is the expected value of the given probability distribution?

2 2
A. C.
10 5

12 12
B. D.
10 5

3. What of the following best described the expected value of a probability

distribution?
A. It measures the variability of the values assumed by the random variables.
B. It gives the difference between the highest and lowest values assumed by
the random variables
C. It is the square root of the variance of the probability distribution.
D. It is the average value of a random variable over numerous trials of an
experiment.
For numbers 4-6, refer to the following:
One thousand tickets are sold for ₱50.00 each. One ticket will win ₱10,000.00,
two tickets will win ₱5,000.00 each and three tickets will win ₱1,000.00 each.
Let X denote the net gain from the purchase of a randomly selected ticket.

4. What is the probability that you will win a prize if you buy two tickets?

2
A. 2 C.
1000

2 998
B. D.
500 1000

15
5. Which of the following tables of values shows the probability distribution of X?

A. x 10,000 5,000 1,000 -50

P(x) 1 2 3 994
1000 1000 1000 1000

B. x 10,000 5,000 1,000 -50

P(x) 1 2 3 1
999 998 997 999

C. x 9,950 4,950 950 -50

P(x) 1 2 3 994
1000 1000 1000 1000
D. x 9.950 4,950 1,000 -50
P(x) 1 2 3 1
999 998 997 999
6. What is the mean or the expected value of a person who buys a ticket?

A. - 25 C. 27
B. - 27 D. 25

For numbers 7-8, refer to the following:

You buy three ₱1,000.00 raffle tickets for a prize of a new 20-passenger Sarao
jeepney valued at ₱800, 000.00. Two thousand tickets are sold.

7. What is the probability of winning the prize in the purchase of three

tickets?
1 3
A. C.
2000 2000
2 4
B. D.
2000 2000

8. What is the probability that you will NOT win the prize? (refer to item 7)
3 997
A. C.
2000 2000
97 1997
B. D.
2000 2000

16
 For numbers 9-11, refer to the following:
A roulette wheel in an amusement park has the numbers 1 through 60. If you bet
₱100.00 for a randomly chosen number from 1 to 60, you will have a chance to
win a cellular phone worth ₱5,000.00.
9. If X denotes the net gain from taking a chance to bet on a randomly
selected number. Which of the following tables of values shows the
probability distribution of X?
A. X 5000 -1000 C. x 60 -1
P(x) 1 59 P(x) 1 59
60 60 60 60

B. x 4900 -1000 D. x 100 -1

P(x) 1 59 P(x) 1 59
60 60 60 60
10. What is the mean or the expected value for
those who take a bet?
A. – 10.12 C. -16.67
B. -15.40 D. -18.25

11. How much the organizer will earn if 100 games will be played?
A. ₱50,000.00 C. ₱150,000.00
B. ₱100, 000.00 D. ₱250,000.00

For numbers 12 -15, refer to the following:

A life insurance company will sell a 1 million three-year term life insurance policy
exclusive in a particular risk group for a premium of ₱2,000.00. Let X denote the
net gain to the company from the sale of one policy.

12. If a person in this risk group has a 99.95% chance of surviving within
three years, what is the probability that he will NOT survive within three
years?
A. 0.995 C. 0.005
B. 0.9995 D. 0.0005

13. How much is the net loss of the insurance company from a policyholder
if his family will avail of the insurance benefits?
A. ₱1,000,000.00 C. ₱998,000.00
B. ₱999, 000.00 D. ₱995,000.00

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14. Which of the following tables of values shows the probability distribution of X, if
each policyholder has a 99.95% chance of surviving within three years?
A. x 2,000 -1,000,000 C. x 2000 -998,000
P(x) 0.9995 0.0005 P(x) 0.9995 0.0005
B. D.
x 1,000,000 2,000 x 2000 -998,000
P(x) 0.9995 0.0005 P(x) 0.9995 0.0005

15. Find the expected value to the company of a single policy?

A. ₱1,500.00 C. ₱1,800.00
B. ₱1,690.00 D. ₱1,950.00

Additional Activities

18
If you want to try more, these activities are for you. It will help you to practice
your skill in solving real-life problems involving mean or expected value and to
make wise decisions on matters like taking a chance in lottery, starting your
own business and considering investment.

Study and analyze each situation to solve the problem.

1. Game of Chance (Lottery)

A lotto works by picking 6 numbers from 1- 42 (Combinations of numbers

from 1-42 taken 6 at a time produce 5,245,786 number combinations). A
ticket costs ₱24.00 to play the lottery. If you win today, you would win 5
million pesos after taxes. If you play the lottery today, what would be your
expected winnings or losses?

2. Business Opportunity

The net gain for a day of Joy in a Cup Bread and Pastry Shop depends on
the number of cupcakes sold within a day. If X is the amount of income
within a day for five consecutive days. Compute the mean or expected
earnings for a day and the variance. The probability of X is shown below.

x 5000 4500 4000 3500 3000

P( x ) 0.20 0.16 0.31 0.17 0.16

3. Investment

A person may earn ₱100,000.00 by investing in the stocks of an international

company with a probability of 0.40 or lose ₱35,000.00 over the same period
with a probability of 0.60. Let X denote the net gain of a person who will
invest in the company, construct the probability distribution of X, and
compute for the expected value of a person who will invest in the same
company. Interpret the result

How well did you perform in this lesson?

Are you now ready for the next lesson?
If your answer is Yes, I am HAPPY for you. Good Luck and happy learning on your next journey.😊

Answer Key

19
 What's More
Independent Activity 1

x 9,950 4,950 2,450 -50

P(x )1/100
0
1/100
0
1/100
0
997/100
0

1 1 1
P ( W )= + + =3 /1000
1000 1000 1000
E ( x )=−32.50
Additional Activies
Interpretation: If someone were to buy tickets
repeatedly and although he has a chance to win, he
1. E ( x )=−23.05 would lose ₱32.50 on average per ticket purchased,
Independent Assessment 1

x 149,850 -150
2. E ( x )=4035
P( x )1/2000 1999/2000

3. E ( x )=19000
E ( x )=( 149850 ) ( 2000
1
)+(−150 )( 1999
Interpretation: If someone were to buy tickets
2000 )
=−75

repeatedly and although he has a chance to win, he

would lose ₱75.00 on average per ticket purchased.
Independent Activity 2

x 95 -5

P( x )1/30 29/30

E ( x )=( 95 ) ( 301 )+ (−5) ( 2930 )=−1.67

sAssessment Interpretation: If someone were to bet on numbers at
the roulette repeatedly and although he has a chance
What I Know
to win, he would lose ₱1.67 per bet.

1. A 1. A
If each number on the roulette has a bet, the net gain
of the organizer is equal to 30 times ₱5.00 less than
2. D the prize (₱100.00). So, the net gain per game is 2. A
3. D 3. C
₱50.00, and if there will be 100 games, the total net
gain will be ₱5,000.00.
4. C Independent Assessment 2
4. C
5. C x 20 10 0 -10 5. C
6. B P( x ) 1/8 1/4 1/4 1/8 6. A
7. C 7. B

() () () ()
8. C 1 1 1 8. C 1 5
9. B E ( x )=( 20 ) + (10 ) + (0) + (−10
9. A) = =1.25
8 4 4 8 4
10.C Independent Activity 3 10.B
11.B x 500 -249,500
11.D
12.D P( x ) 0.9996 0.0004
12.D
13.C 13.C
14.C E ( x )=( 500 ) ( 0.9996 ) + (−249500 ) ( 0.0004 14.D )=400
15.A 15.C
Interpretation: With a probability of 0.04%, the

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References
Lim, Yvette F., Nocon, Rizaldi C., Nocon, Ederlina G., Ruivivar, Leonor A. Math for
Engaged Learning Statistics and Probability. Quezon City: Sibs Publishing
House, Inc. 2016.

Malate, Jose S. Statistics and Probability for Senior High School. Sta. Ana Manila:
Vicarish Publications and Trading, Inc. 2017.

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