Discrete Probability Distributions
Introduction
Many decisions in business, insurance, and other real-life situations are made by
assigning probabilities to all possible outcomes pertaining to the situation and then evaluating
the results. For example, a saleswoman can compute the probability that she will make 0, 1, 2,
or 3 or more sales in a single day. An insurance company might be able to assign probabilities
to the number of vehicles a family owns. A self-employed speaker might be able to compute the
probabilities for giving 0, 1, 2, 3, or 4 or more speeches each week. Once these probabilities are
assigned, statistics such as the mean, variance, and standard deviation can be computed for
these events. With these statistics, various decisions can be made. The saleswoman will be able
to compute the average number of sales she makes per week, and if she is working on
commission, she will be able to approximate her weekly income over a period of time, say,
monthly. The public speaker will be able to plan ahead and approximate his average income and
expenses. The insurance company can use its information to design special computer forms and
programs to accommodate its customers’ future needs. This chapter explains the concepts and
applications of what is called a probability distribution. In addition, special probability
distributions, such as the binomial, multinomial, Poisson, and hypergeometric distributions, are
explained.
Probability Distributions
Before probability distribution is defined formally, the definition of a variable is
reviewed. In Chapter 1, a variable was defined as a characteristic or attribute that can assume
different values. Various letters of the alphabet, such as X, Y, or Z, are used to represent
variables. Since the variables in this chapter are associated with probability, they are called
random variables. For example, if a die is rolled, a letter such as X can be used to represent the
outcomes. Then the value that X can assume is 1, 2, 3, 4, 5, or 6, corresponding to the outcomes
of rolling a single die. If two coins are tossed, a letter, say Y, can be used to represent the
number of heads, in this case 0, 1, or 2. As another example, if the temperature at 8:00 A.M. is
43 and at noon it is 53, then the values T that the temperature assumes are said to be random,
since they are due to various atmospheric conditions at the time the temperature was taken.
A random variable is a variable whose values are determined by chance.
Also recall from Chapter 1 that you can classify variables as discrete or continuous
by observing the values the variable can assume. If a variable can assume only a specific
number of values, such as the outcomes for the roll of a die or the outcomes for the toss of a
coin, then the variable is called a discrete variable. Discrete variables have a finite number of
possible values or an infinite number of values that can be counted. The word counted means
that they can be enumerated using the numbers 1, 2, 3, etc. For example, the number of joggers
in Riverview Park each day and the number of phone calls received after a TV commercial airs
are examples of discrete variables, since they can be counted. Variables that can assume all
values in the interval between any two given values
are called continuous variables. For example, if the temperature goes from 62 to 78 in a 24-
hour period, it has passed through every possible number from 62 to 78. Continuous random
variables are obtained from data that can be measured rather than counted. Continuous random
variables can assume an infinite number of values and can be decimal and fractional values. On
a continuous scale, a person’s weight might be exactly 183.426 pounds if a scale could measure
weight to the thousandths place; however, on a digital scale that measures only to tenths of
pounds, the weight would be 183.4 pounds. Examples of continuous variables are heights,
weights, temperatures, and time. In this chapter only discrete random variables are used;
Chapter 6 explains continuous random variables. The procedure shown here for constructing a
probability distribution for a discrete random variable uses the probability experiment of tossing
three coins. Recall that when three coins are tossed, the sample space is represented as TTT,
TTH, THT, HTT, HHT, HTH, THH, HHH; and if X is the random variable for the number of
heads, then X assumes the value 0, 1, 2, or 3.
A discrete probability distribution consists of the values a random variable can
assume and the corresponding probabilities of the values. The probabilities are determined
theoretically or by observation.
Discrete probability distributions can be shown by using a graph or a table. Probability
distributions can also be represented by a formula.
Example 1. Construct a probability distribution for rolling a single die.
Solution: Since the sample space is 1, 2, 3, 4, 5, 6 and each outcome has a probability of , the
distribution is as shown.
Note that for visual appearances, it is not necessary to start with 0 at the origin.
Remember that the variance and standard deviation cannot be negative.
B – Binary Outcomes
I – Independent Trials
N – no. of trials
S – same p per trial
