NumericalCharactersofRandomVariables.ppt

Numerical Characters of Random Variables Why Research Numerical Characters? We all know, once we obtain the PMF or PDF (or corresponding CDF), we can solve all kinds of problems with random feature. However, sometimes it is difficult even impossible to know the PMF or PDF related to a certain question. In these cases, numerical characters usually make us solve problems. Numerical characters are also the key to PDF. Expectation of a RV One of the most important concepts in probability theory is that of the expectation of a RV. If is a discrete RV having a PMF , then the expectation, or the expected value, of , denoted by , is defined by The expected value of can also be seen as a weighted average. Example 01 A contestant on a quiz show is presented with two questions, 1 and 2, which he is to attempt to answer in some in some order he choose. If he decides to try question i first, then he will be allowed to go on to question j, j≠i, only if his answer to question i is correct. The contestant will be received Vi (i=1,2) dollars if he answers question i correctly. Suppose he knows the probability answering correctly is Pi (i=1,2), which question should he attempt to answer first so as to maximize his expected winnings? Assume his answering correctly to questions 1,2 are independent. Example 02 Compute the expectation of binomial VR with parameters . Computer the expectation of Possion VR with parameter . Continuous Case The equation of the expectation in continuous case as follows. Compute the expectation of exponential RV. Example 03 Suppose that if you are s minutes early for an appointment, then you incur the cost cs, and if you are s minutes late, then you incur the cost ks. Suppose also that the travel time from where you presently are to the location of your appointment is a continuous random variable having prob- ability density function f. Determine the time at which you should depart if you want to