Computing the variance of a

Discrete Probability Distribution

Ram Villarosa Jr.
Variance of DPD
• Illustrate and calculate the variance
of a discrete random variable;
• Interpret the variance of a discrete
random variable
• Solve problems involving variance of
probability distribution
Steps in Finding the variance and standard deviation

• Find the mean of the probability

distribution
• Subtract the mean from each value of
the random variable X.
• Square the results obtained in STEP 2.
• Multiply the results obtained in STEP
3 by the corresponding probability
• Get the sum of the results obtained in
STEP 4
Example #1
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.
METHOD A
Number of Probability
∙ 𝑷 ( 𝑿 )𝑿 − 𝝁 (  𝑿 − 𝝁  )𝟐(𝑿
𝟐
Cars Sold P(X)  𝑿   − 𝝁  ) ∙ 𝑷( 𝑿)
(X)
 Variance )
0 0.10 0 -2.20 4.84 0.484
 = 1.56
1 0.20 0.20 -1.20 1.44 0.288 Standard Deviation
= 
2 0.30 0.60 -0.20 0.04 0.012 ¿ √ 𝟏. 𝟓𝟔
 
 = 1.25

3 0.20 0.60 0.80 0.64 0.128

4 0.20 0.80 1.80 3.24 0.648

 
Total 1.00   .20 =1.56
METHOD B
Number of Probability
Cars Sold P(X)  𝑿 ∙ 𝑷 ( 𝑿 )𝑿 𝟐 𝑿 𝟐
  ∙ 𝑷( 𝑿)
(X)

0 0.10 0 0 0
 Variance )
1 0.20 0.20 1 0.20
𝟐 𝟐 𝟐
𝝈 =∑ 𝑿 ∙𝑷(𝑿)−𝝁
 

2 0.30 0.60 4 1.20

  ¿ 𝟔 . 𝟒𝟎 − ( 𝟐 . 𝟐𝟎 ) 𝟐
 ¿ 𝟔 . 𝟒𝟎 − 𝟒 . 𝟖𝟒
3 0.20 0.60 9 1.80   𝝈 𝟐 =𝟏 . 𝟓𝟔
) 
4 0.20 0.80 16 3.20   𝟐
𝝈=√ 𝝈
 
=6.40  ¿ √ 𝟏 . 𝟓𝟔
Total 1.00    
.20
𝝈 =𝟏 . 𝟐𝟓
LETS TRY MORE!!!
Solve for 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
27 0.05
Total
METHOD A
  𝑿 ∙ 𝑷 ( 𝑿 )𝑿 − 𝝁 (  𝑿 − 𝝁  )𝟐(𝑿 𝟐
(X) P(X)   − 𝝁  ) ∙ 𝑷( 𝑿)

22 0.08 1.76 -2.19 4.80 0.384  Variance )

 = 1.458
23 0.19 4.37 -1.19 1.42 0.270
Standard Deviation
24 = 
0.36 8.64 -0.19 0.04 0.014
¿ √ 𝟏. 𝟒𝟓𝟖
 
25  = 1.21
0.25 6.25 0.81 0.66 0.165

26 0.07 1.82 1.81 3.28 0.230

27 0.05 1.35 2.81 7.90 0.395

Total 1.00   .19   𝟐 =𝟏. 𝟒𝟓𝟖

𝝈
METHOD B
 (X) P(X)  𝑿 ∙ 𝑷 ( 𝑿 ) 𝑿 𝟐 𝑿 𝟐
  ∙ 𝑷( 𝑿)

22 0.08 1.76 484 38.72

23 100.51  Variance )
0.19 4.37 529
𝟐 𝟐 𝟐
𝝈 =∑ 𝑿 ∙𝑷(𝑿)−𝝁
 
24 0.36 8.64 576 207.36
 ¿ 𝟓𝟖𝟔 . 𝟔𝟏  − ( 𝟐 𝟒 .𝟏𝟗 ) 𝟐
156.25
25 0.25 6.25 625 ¿  𝟓𝟖𝟔 . 𝟔𝟏−𝟓𝟖𝟓 . 𝟏𝟓𝟔𝟏
  𝝈 𝟐 =𝟏 . 𝟒𝟓𝟒
26 0.07 1.82 676 47.32
) 
𝟐
27 0.05 1.35 729 36.45 𝝈 =√ 𝝈
 

   ¿
√ 𝟏 .
=586.61  𝝈 =𝟏 . 𝟐𝟏
𝟒𝟓𝟒
Total 1.00   .19
LET’s have a QUIZ
Solve for the mean, variance and standard deviation

Number of inquiries X Probability P(X)

2 0.10
4 0.23
6 0.25
8 0.36
10 0.06
Total