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How do we measure the spread of a discrete random variable around its mean?

Calculate and interpret the variance and standard deviation of a discrete random variable, including the effect of a linear transformation

WACE Year 12 Mathematics Methods Unit 3 variance and standard deviation of a discrete random variable: the definition, the E of X squared minus mean squared shortcut, the linear transformation rule, with worked SCSA-style examples.

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  1. What this dot point is asking
  2. Definition of variance
  3. Why the standard deviation
  4. Linear transformations
  5. Why the shortcut works
  6. Interpreting the standard deviation

What this dot point is asking

SCSA Unit 3 measures the spread of a discrete random variable with its variance and standard deviation. This dot point asks you to compute both, use the efficient E(X2)μ2E(X^{2})-\mu^{2} form, and apply the linear transformation rule. It is examined in both sections of the WACE written examination.

Definition of variance

The variance is the expected squared distance from the mean, so it captures how widely the values are spread.

The equivalent form E(X2)μ2E(X^{2})-\mu^{2} is almost always faster by hand: compute E(X2)=x2P(X=x)E(X^{2})=\sum x^{2}P(X=x) and subtract the square of the mean.

Why the standard deviation

Variance is in squared units, which are awkward to interpret. Taking the square root returns the standard deviation to the same units as XX, giving a directly interpretable measure of typical distance from the mean.

Linear transformations

Adding a constant shifts every value but does not change the spread, so it leaves the variance unchanged. Multiplying by a constant scales every distance from the mean, so the variance scales by the square of the constant.

For example, if Var(X)=2.44\mathrm{Var}(X)=2.44, then Var(3X+5)=9×2.44=21.96\mathrm{Var}(3X+5)=9\times 2.44=21.96. The added 55 has no effect on spread; only the multiplier 33 matters, squared.

Why the shortcut works

The two forms of the variance are equal by expanding the squared bracket:

E((Xμ)2)=E(X22μX+μ2)=E(X2)2μE(X)+μ2.E\bigl((X-\mu)^{2}\bigr)=E(X^{2}-2\mu X+\mu^{2})=E(X^{2})-2\mu E(X)+\mu^{2}.

Since E(X)=μE(X)=\mu, the middle term is 2μ2-2\mu^{2} and the last is +μ2+\mu^{2}, leaving
E(X2)2μ2+μ2=E(X2)μ2.E(X^{2})-2\mu^{2}+\mu^{2}=E(X^{2})-\mu^{2}.

This is why the computational form E(X2)[E(X)]2E(X^{2})-[E(X)]^{2} always matches the definition, and why it is faster: you compute one extra weighted sum E(X2)E(X^{2}) rather than re-centring every value before squaring.

Interpreting the standard deviation

A small standard deviation means the values of XX cluster tightly around the mean; a large one means they are widely spread. Because the standard deviation shares the units of XX, it can be compared directly with the mean. Two distributions with the same mean but different standard deviations have the same centre but different reliability, which matters in any decision that weighs an average against its risk.

Exam-style practice questions

Practice questions written in the style of SCSA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.

WACE 20226 marksCalculator-assumed. A discrete random variable XX has P(X=1)=0.2P(X=1)=0.2, P(X=2)=0.5P(X=2)=0.5, P(X=3)=0.3P(X=3)=0.3. (a) Find E(X)E(X). (b) Find Var(X)\mathrm{Var}(X). (c) Find the standard deviation, to two decimal places.
Show worked answer →

A full mean-variance computation.

(a) E(X)=1(0.2)+2(0.5)+3(0.3)=0.2+1.0+0.9=2.1E(X)=1(0.2)+2(0.5)+3(0.3)=0.2+1.0+0.9=2.1.

(b) E(X2)=1(0.2)+4(0.5)+9(0.3)=0.2+2.0+2.7=4.9E(X^{2})=1(0.2)+4(0.5)+9(0.3)=0.2+2.0+2.7=4.9. Then Var(X)=E(X2)[E(X)]2=4.92.12=4.94.41=0.49\mathrm{Var}(X)=E(X^{2})-[E(X)]^{2}=4.9-2.1^{2}=4.9-4.41=0.49.

(c) σ=0.49=0.70\sigma=\sqrt{0.49}=0.70.

Markers reward the mean, E(X2)E(X^{2}), the subtraction of μ2\mu^{2}, and the square root for the standard deviation.

WACE 20243 marksCalculator-free. A discrete random variable XX has Var(X)=4\mathrm{Var}(X)=4. Find (a) Var(3X)\mathrm{Var}(3X), (b) Var(X+7)\mathrm{Var}(X+7) and (c) the standard deviation of 3X3X.
Show worked answer →

A test of the linear-transformation rule for variance.

(a) Var(3X)=32Var(X)=9×4=36\mathrm{Var}(3X)=3^{2}\mathrm{Var}(X)=9\times 4=36.

(b) Adding a constant does not change spread, so Var(X+7)=Var(X)=4\mathrm{Var}(X+7)=\mathrm{Var}(X)=4.

(c) SD(3X)=3SD(X)=34=3×2=6\mathrm{SD}(3X)=|3|\,\mathrm{SD}(X)=3\sqrt{4}=3\times 2=6.

Markers reward squaring the multiplier in (a), recognising the constant has no effect in (b), and the standard-deviation scaling by a|a| in (c).

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