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Chapter 8: Discrete Probability Distributions

the second prize will be 1/999; the third prize will be 1/998; and not winning

will be 997/1000.

Based on these computations, the probability distribution for

X

is given in

Table 8-9

.

Table 8-9:

Probability Distribution

for

Example 8-6

Once again, one can use the tabular presentation to help find the variance for

a discrete random variable. We can work out the values for the different

terms in the computational variance formula. This is illustrated in

Table 8-10

.