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Expected value and variability · Tutorial 340 of 1000

Exam Practice on Mean and Standard Deviation of Random Variables

Practice organizing a complete response about a game by defining net winnings, calculating its mean and standard deviation, and interpreting what those values describe over repeated plays.

Intermediate 9 min read

What You'll Learn

  • Define a random variable for a game’s net winnings per play.
  • Check that a stated game distribution is valid before using it.
  • Organize a complete mean-and-standard-deviation calculation.
  • Interpret expected net winnings as a long-run average, not a guaranteed result.
  • Describe standard deviation in the original units of the game.
  • Check a variance calculation using a second method.

Turn a Game Description into a Complete Response

A free-response question about a game may ask for more than a numerical answer. You may need to define the random variable, use the probability distribution to calculate its mean and standard deviation, and explain what those values mean for a player. A response is strongest when it makes each part visible and keeps the meaning of the numbers tied to the game.

This tutorial builds on Probability Distributions for Games of Chance, Expected Value in Games and Raffles, and Interpreting Standard Deviation of a Random Variable. It also uses the staged calculation table from Setting Up the Calculation Table Efficiently. The emphasis here is on assembling those ideas into a complete exam-style solution—not on treating the mean or standard deviation as a guaranteed outcome on one play.

Response checklist: Define the random variable in context; check that the probabilities form a valid distribution; calculate the probability-weighted mean; use that mean to calculate the weighted squared deviations and standard deviation; then interpret both summaries in the game’s units.

For a game, define \(X\) as the player’s net winnings on one play unless the question specifies a different quantity. Net winnings include the cost to play: a loss is negative, breaking even is zero, and a net gain is positive. Keep this definition consistent when you make your calculations and interpretations.

A Four-Step Free-Response Structure

The steps below help you answer the whole question instead of stopping once you have a calculator result. In particular, the conclusion should say what the mean and standard deviation describe. Just writing two numbers does not explain their significance.

1
State.
Define \(X\), including what one play means and the units of net winnings.
2
Plan and check.
Verify that each probability is between 0 and 1 and that the probabilities for all possible outcomes add to 1. Identify the mean and standard-deviation calculations you will use.
3
Do.
Show the weighted products used to find the mean. Then show the weighted squared deviations, variance, and square root used to find standard deviation.
4
Conclude in context.
Interpret the mean as a long-run average net result per play and the standard deviation as a typical distance of net winnings from that mean.

The probability check matters even when the question provides a table. A calculation using probabilities that do not describe a valid distribution cannot support a meaningful mean or standard deviation. As covered in Checking Whether a Probability Distribution Is Valid, make both checks: no probability is outside 0 to 1, and the probabilities sum to 1.

Formula reminder: For possible net winnings \(x\), the mean is \(\mu_X=\sum xP(X=x)\). The variance is \(\sigma_X^2=\sum (x-\mu_X)^2P(X=x)\), and the standard deviation is the nonnegative square root \(\sigma_X=\sqrt{\sigma_X^2}\). Standard deviation has the same units as \(X\); variance has squared units.

Worked Example: A Spinner Game

Worked Example: A Spinner Game

A fictional tabletop game costs a player nothing to enter, but the rules assign a net result for each spinner outcome. On one play, a player’s net winnings are \(-\$2\) with probability 0.50, \(\$1\) with probability 0.30, or \(\$7\) with probability 0.20. Find and interpret the mean and standard deviation of net winnings.

State. Let \(X\) be a player’s net winnings, in dollars, on one play of the game. We want \(\mu_X\) and \(\sigma_X\).

Plan. The probabilities are all between 0 and 1, and \(0.50+0.30+0.20=1.00\), so this is a valid distribution. Use the weighted values \(xP(X=x)\) to find \(\mu_X\). Then use the weighted squared deviations from that mean to find the variance and its square root.

Do. First calculate the mean:

$$ \begin{aligned} \mu_X &=(-2)(0.50)+(1)(0.30)+(7)(0.20)\\ &=-1.00+0.30+1.40\\ &=0.70\text{ dollars per play}. \end{aligned} $$

Now use the mean of \(\$0.70\) to calculate each deviation, square it, and multiply by the probability for that outcome.

\(x\), dollars\(P(X=x)\)\(xP(X=x)\)\(x-\mu_X\)\((x-\mu_X)^2\)\((x-\mu_X)^2P(X=x)\)
-20.50-1.00-2.707.293.645
10.300.300.300.090.027
70.201.406.3039.697.938
Total1.000.70——11.610

For instance, when \(x=-2\), the deviation is \(-2-0.70=-2.70\) dollars. Its contribution to variance is \((-2.70)^2(0.50)=7.29(0.50)=3.645\) dollars squared. Adding all three contributions gives:

$$ \begin{aligned} \sigma_X^2 &=3.645+0.027+7.938\\ &=11.610\text{ dollars}^2,\\ \sigma_X &=\sqrt{11.610}\approx3.4073\text{ dollars}. \end{aligned} $$

A second calculation checks the variance. The probability-weighted squared values total \(E(X^2)=(-2)^2(0.50)+(1)^2(0.30)+(7)^2(0.20)=2.00+0.30+9.80=12.10\). Subtracting the square of the mean gives \(12.10-(0.70)^2=12.10-0.49=11.61\), matching the table. Also, \(3.4073^2\) is approximately \(11.61\), allowing for rounding.

Conclude. The game’s expected net winnings are \(\$0.70\) per play. Over many plays under these same rules, the player’s average net winnings per play would tend toward about \(\$0.70\). The standard deviation is about \(\$3.41\) per play, meaning net winnings typically differ from the mean of \(\$0.70\) by about \(\$3.41\). Neither value guarantees what happens on any single play.

Worked Example: A Token-Drawing Game

Worked Example: A Token-Drawing Game

In a fictional arcade game, one play results in net winnings of \(-\$4\), \(\$2\), or \(\$5\), with probabilities 0.25, 0.50, and 0.25, respectively. Find the mean and standard deviation, and explain what the mean says about the game over repeated plays.

State. Let \(X\) be the player’s net winnings in dollars from one play.

Plan. The probabilities are between 0 and 1 and add to \(0.25+0.50+0.25=1.00\). We can therefore use the distribution to calculate the probability-weighted mean and standard deviation.

Do. The mean is:

$$ \begin{aligned} \mu_X &=(-4)(0.25)+(2)(0.50)+(5)(0.25)\\ &=-1.00+1.00+1.25\\ &=1.25\text{ dollars per play}. \end{aligned} $$

Using \(\mu_X=1.25\), the deviations are \(-5.25\), \(0.75\), and \(3.75\) dollars. Their weighted squared deviations are \(({-5.25})^2(0.25)=27.5625(0.25)=6.890625\), \((0.75)^2(0.50)=0.5625(0.50)=0.28125\), and \((3.75)^2(0.25)=14.0625(0.25)=3.515625\). Thus:

$$ \begin{aligned} \sigma_X^2 &=6.890625+0.28125+3.515625\\ &=10.6875\text{ dollars}^2,\\ \sigma_X &=\sqrt{10.6875}\approx3.2692\text{ dollars}. \end{aligned} $$

Check the variance with the squared-value method: \(E(X^2)=16(0.25)+4(0.50)+25(0.25)=4+2+6.25=12.25\). Then \(E(X^2)-\mu_X^2=12.25-(1.25)^2=12.25-1.5625=10.6875\), the same variance. The square of \(3.2692\) is approximately \(10.6875\).

Conclude. The expected net winnings are \(\$1.25\) per play. If the game is played repeatedly under the same rules, the average net winnings per play would tend toward \(\$1.25\). The standard deviation is about \(\$3.27\) per play, so the outcomes typically vary from that mean by about \(\$3.27\). A positive mean does not mean that a player wins on every play; a loss of \(\$4\) remains possible.

Worked Example: A Game with a Small Negative Mean

Worked Example: A Game with a Small Negative Mean

A fictional community event offers a game with net winnings of \(-\$1\), \(\$0\), or \(\$3\) on a play, with probabilities 0.60, 0.25, and 0.15. Calculate and interpret both summaries. Pay special attention to distinguishing the expected result from a typical single result.

State. Let \(X\) be a player’s net winnings in dollars on one play.

Plan. Each probability is between 0 and 1, and \(0.60+0.25+0.15=1.00\), so the distribution is valid. Find the mean first, then use it to calculate the weighted squared deviations and standard deviation.

Do. The probability-weighted mean is:

$$ \begin{aligned} \mu_X &=(-1)(0.60)+(0)(0.25)+(3)(0.15)\\ &=-0.60+0+0.45\\ &=-0.15\text{ dollars per play}. \end{aligned} $$

The deviations from \(-0.15\) dollars are \(-0.85\), \(0.15\), and \(3.15\). The variance contributions are \(({-0.85})^2(0.60)=0.7225(0.60)=0.4335\), \((0.15)^2(0.25)=0.0225(0.25)=0.005625\), and \((3.15)^2(0.15)=9.9225(0.15)=1.488375\). Therefore:

$$ \begin{aligned} \sigma_X^2 &=0.4335+0.005625+1.488375\\ &=1.9275\text{ dollars}^2,\\ \sigma_X &=\sqrt{1.9275}\approx1.3883\text{ dollars}. \end{aligned} $$

As a check, \(E(X^2)=(-1)^2(0.60)+0^2(0.25)+3^2(0.15)=0.60+0+1.35=1.95\). Subtracting the squared mean gives \(1.95-(-0.15)^2=1.95-0.0225=1.9275\), which matches the direct calculation. The squared standard deviation is approximately \(1.9275\).

Conclude. The mean of \(-\$0.15\) per play describes a long-run average loss of about 15 cents per play under this model. It does not say that a player loses exactly 15 cents on an individual play. The standard deviation of about \(\$1.39\) per play describes a typical distance between a play’s net winnings and the mean of \(-\$0.15\).

Common Mistakes and What a Full-Credit Response Says

When grading a response, an AP reader looks for correct calculations and clear communication in context. A final answer without definitions or interpretations may leave important parts of the question unanswered. Watch for these specific errors:

  • Reporting prize amounts instead of net winnings. If the variable is net winnings, include the play cost when calculating each outcome. State whether negative values represent losses.
  • Using an incorrect probability total. Check that all stated outcomes are included and the probabilities add to 1. Do not proceed as if an invalid table were a probability distribution.
  • Using the wrong center for deviations. Calculate the mean before finding \(x-\mu_X\), and use the same mean in every row.
  • Forgetting to weight squared deviations. A squared deviation is not yet a variance contribution. Multiply by \(P(X=x)\), then add those contributions.
  • Reporting variance as standard deviation. Variance is in dollars squared; standard deviation is the square root and is in dollars. The interpretation of typical distance uses standard deviation, not variance.
  • Calling the mean a guaranteed outcome. A mean of \(\$1.25\) per play does not mean every play earns \(\$1.25\). Say it is the long-run average per play for repeated plays under the model.
  • Giving a vague standard-deviation interpretation. “The results vary by 1.39” is incomplete. Specify that net winnings typically differ from their mean by about \(\$1.39\) per play.
  • Mixing values from different scenarios. Make sure the mean, variance, standard deviation, and interpretation all come from the same listed outcomes and probabilities. Recheck the weighted products before writing the conclusion.

Use the game’s units every time you interpret a summary. For a net-winnings variable measured in dollars per play, the mean and standard deviation are both stated in dollars per play. If you report variance along the way, label it in dollars squared. Keep intermediate calculations unrounded when practical and round only the final reported values.

Key Takeaway

A complete game response connects the distribution to a random variable, the random variable to its calculations, and those calculations to a sensible statement about repeated play. The mean describes the modeled long-run average net winnings; the standard deviation describes a typical distance from that mean. Neither summary predicts the result of one particular play.

Key takeaway: Define net winnings for one play, verify the distribution, show the weighted mean and weighted squared deviations, and take the square root of variance for standard deviation. Interpret both results using the game’s context and units.

Check Your Understanding

For each question, show the relevant calculation and use the meaning of net winnings in your explanation.

  1. A game gives net winnings of \(-\$2\), \(\$0\), or \(\$4\), with probabilities 0.50, 0.25, and 0.25. Define a suitable random variable and check whether the probabilities form a valid distribution.
  2. For the game in Question 1, calculate \(\mu_X\). Show each weighted product.
  3. For the same game, calculate \(\sigma_X^2\) and \(\sigma_X\). Show the weighted squared deviations and report the standard deviation in dollars.
  4. Write an in-context interpretation of the mean and standard deviation from Questions 2 and 3. Explain why neither value guarantees a particular result on one play.
  5. A student calculates a variance of \(2.5\) dollars and calls it the typical distance of outcomes from the mean. Identify the error and describe what calculation and units the student should use instead.