Combining Random Variables

Slides:



Advertisements
Similar presentations
Rules for Means and Variances
Advertisements

The Normal Distribution and the Rule p.html p.html.
Normal distribution (3) When you don’t know the standard deviation.
Variance and Standard Deviation The Expected Value of a random variable gives the average value of the distribution The Standard Deviation shows how spread.
Rules for means Rule 1: If X is a random variable and a and b are fixed numbers, then Rule 2: If X and Y are random variables, then.
Lecture 8: z-Score and the Normal Distribution 2011, 10, 6.
Sampling We have a known population.  We ask “what would happen if I drew lots and lots of random samples from this population?”
As with averages, researchers need to transform data into a form conducive to interpretation, comparisons, and statistical analysis measures of dispersion.
Deviation = The sum of the variables on each side of the mean will add up to 0 X
Lesson Means and Variances of Random Variables.
A P STATISTICS LESSON 2 – 2 STANDARD NORMAL CALCULATIONS.
Why is the study of variability important? Allows us to distinguish between usual & unusual values In some situations, want more/less variability –scores.
Examples for the midterm. data = {4,3,6,3,9,6,3,2,6,9} Example 1 Mode = Median = Mean = Standard deviation = Variance = Z scores =
AP Statistics Section 7.2 C Rules for Means & Variances.
Rules for Means and Variances. Rules for Means: Rule 1: If X is a random variable and a and b are constants, then If we add a constant a to every value.
Distribution of the Sample Mean (Central Limit Theorem)
Why is the study of variability important? Allows us to distinguish between usual & unusual values In some situations, want more/less variability –medicine.
Probability: Part 2 Sampling Distributions Wed, March 17 th 2004.
A life insurance company sells a term insurance policy to a 21-year-old male that pays $100,000 if the insured dies within the next 5 years. The probability.
§ 5.3 Normal Distributions: Finding Values. Probability and Normal Distributions If a random variable, x, is normally distributed, you can find the probability.
7 sum of RVs. 7-1: variance of Z Find the variance of Z = X+Y by using Var(X), Var(Y), and Cov(X,Y)
What is Mean Absolute Deviation?  Another measure of variability is called the mean absolute deviation. The mean absolute deviation (MAD) is the average.
PERT/Activity Diagrams, Completion Probability and the Z Score
Welcome to MM570 Applies Statistics for Psychology Unit 2 Seminar Dr. Bob Lockwood.
AP Statistics Chapter 16. Discrete Random Variables A discrete random variable X has a countable number of possible values. The probability distribution.
The Practice of Statistics Third Edition Chapter 7: Random Variables Copyright © 2008 by W. H. Freeman & Company Daniel S. Yates.
LINEAR TRANSFORMATION RULE When adding a constant to a random variable, the mean changes but not the standard deviation. When multiplying a constant to.
AP Statistics, Section 7.2, Part 1 2  The Michigan Daily Game you pick a 3 digit number and win $500 if your number matches the number drawn. AP Statistics,
Engineering Statistics ECIV 2305
7.2 Means and Variances of Random Variables, cont.
§2.The hypothesis testing of one normal population.
C HAPTER 7 D AY 4. R ULES FOR M EANS OF R ANDOM V ARIABLES Rule 1 : If X is a random variable and a and b are fixed numbers, then Rule 2 : If X and Y.
Chapter 4 Discrete Probability Distributions 4.1 Probability Distributions I.Random Variables A random variable x represents a numerical value associated5with.
Central Limit Theorem Let X 1, X 2, …, X n be n independent, identically distributed random variables with mean  and standard deviation . For large n:
Normal Probability Distributions Chapter 5. § 5.2 Normal Distributions: Finding Probabilities.
Chapter 7.2. The __________ of a discrete random variable, X, is its _________ _____________. Each value of X is weighted by its probability. To find.
An Example of {AND, OR, Given that} Using a Normal Distribution By Henry Mesa.
Chapter 2 The Mean, Variance, Standard Deviation, and Z Scores.
Section 2 Standard Units and Areas under the Standard Normal Distribution.
Chapter 6 Part 1 Using the Mean and Standard Deviation Together
A life insurance company sells a term insurance policy to a 21-year-old male that pays $100,000 if the insured dies within the next 5 years. The probability.
Ch5.4 Central Limit Theorem
Random Variables and Probability Distribution (2)
Variability.
5.2 Normal Distributions: Finding Probabilities
__________.
Means and Variances of Random Variables
Variability.
Variability.
Variability.
An Example of {AND, OR, Given that} Using a Normal Distribution
Standard Deviation Calculate the mean Given a Data Set 12, 8, 7, 14, 4
Variance Variance: Standard deviation:
Statistics and Science
Chapter 16.
The Normal Probability Distribution Summary
Variability.
Variability.
Consider the following problem
Discrete Distributions
How to describe a graph Otherwise called CUSS
Discrete Distributions
Use the graph of the given normal distribution to identify μ and σ.
Discrete Distributions.
Variability.
Combining Random Variables
Central Limit Theorem cHapter 18 part 2.
Homework: pg. 500 #41, 42, 47, )a. Mean is 31 seconds.
An Example of {AND, OR, Given that} Using a Normal Distribution
Presentation transcript:

Combining Random Variables

Combining Random Variables Example: Jim and Bob go bowling. Suppose their scores are normally distributed with the following: AVERAGE St. Dev. Jim 163 12 Bob 201 17

Example: AVERAGE St. Dev. Jim 163 12 Bob 201 17 What is the mean and standard deviation of the SUM of their scores?

Rule for sum/difference: The mean of the sum (or difference) of random variables is the sum (or difference) of the means. For our example:

Example: AVERAGE St. Dev. Jim 163 12 Bob 201 17 What is the mean of their combined score?

Example: AVERAGE St. Dev. Jim 163 12 Bob 201 17 What is the mean difference in their scores?

Rule for Standard Deviation The variance of the sum of random variables is the sum of the variances. ** You must ADD VARIANCES, not standard deviations.

Example: AVERAGE St. Dev. Jim 163 12 Bob 201 17 What is the standard deviation of their combined score? - First find the variance:

Example Cont. So the variance of the sum is: (12)2 + (17)2 = 433 (12)2 + (17)2 = 433 Then, the standard deviation is: NOTE – THIS IS NOT THE SUM OF THE STANDARD DEVIATIONS!!

Example: AVERAGE St. Dev. Jim 163 12 Bob 201 17 What is the standard deviation of the difference of their scores? NOTE: We still ADD VARIANCES!

Think about… Why do we ADD variances for the difference of two variables???????