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134
                                         Part III: Distributions and the Central Limit Theorem
                                                                     Probability Distribution for X = Number of Dogs
                                                      Table 8-1
                                                                             Owned by Apartment Renters

                                                                                          p(x)
                                                      x
                                                                                          0.50
                                                      0
                                                      1
                                                                                          0.40
                                                                                          0.07
                                                      2
                                                                                          0.03
                                                      3
                                                    The mean and variance of a
                                                    discrete random variable
                                                    The mean of a random variable is the average of all the outcomes you would
                                                    expect in the long term (over all possible samples). For example, if you roll a
                                                    die a billion times and record the outcomes, the average of those outcomes is
                                                    3.5. (Each outcome happens with equal chance, so you average the numbers
                                                    1 through 6 to get 3.5.) However, if the die is loaded and you roll a 1 more
                                                    often than anything else, the average outcome from a billion rolls is closer
                                                    to 1 than to 3.5.
                                                    The notation for the mean of a random variable X is    (pronounced “mu
                                                    sub x”; or just “mu x”). Because you are looking at all the outcomes in the long
                                                    term, it’s the same as looking at the mean of an entire population of values,
                                                    which is why you denote it    and not  . (The latter represents the mean of
                                                    a sample of values [see Chapter 5].) You put the X in the subscript to remind
                                                    you that the variable this mean belongs to is the X variable (as opposed to a Y
                                                    variable or some other letter).
                                                    The variance of a random variable is roughly interpreted as the average
                                                    squared distance from the mean for all the outcomes you would get in the
                                                    long term, over all possible samples. This is the same as the variance of the
                                                    population of all possible values. The notation for variance of a random vari-
                                                    able X is      . You say “sigma sub x, squared” or just “sigma squared.”
                                                    The standard deviation of a random variable X is the square root of the vari-
                                                    ance, denoted by       (say “sigma x” or just “sigma”). It roughly repre-
                                                    sents the average distance from the mean.
                                                    Just like for the mean, you use the Greek notation to denote the variance and
                                                                                                           2
                                                    standard deviation of a random variable. The English notation s  and s repre-
                                                    sent the variance and standard deviation of a sample of individuals, not the
                                                    entire population (see Chapter 5).




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                             14_9780470911082-ch08.indd   134                                                              3/25/11   8:16 PM
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