COMPUTING THE VARIANCE OF

A DISCRETE PROBABILITY
DISTRIBUTION
STEPS IN FINDING THE VARIANCE
and STANDARD DEVIATION
1. Find the mean of the probability distribution.
2. Subtract the mean from each value of the
random variable X.
3. Square the results obtained in Step 2.
4. Multiply the results obtained in Step 3 by the
corresponding probability.
5. Get the sum of the results obtained in Step 4.
6. Get the square root of the variance to get the
standard deviation.
 Formula for the Variance and Standard Deviation of a Discrete
Probability Distribution

Variance of a discrete probability distribution is given:

𝝈𝟐 = ∑ 𝑿 − µ 𝟐 ∙ 𝑷 𝑿
Standard deviation of a discrete probability distribution is given:
𝝈= ∑ 𝑿−µ 𝟐∙𝑷 𝑿

Where: X = value of the random variable

P(X) = probability of the random variable X
µ = mean of the probability distribution
 Number of Cars Sold
The number of cars sold per day at a
local car dealership, along with its
corresponding probabilities, is shown in
succeeding table. Compute the variance
and the standard deviation of the
probability distribution.
Number of Cars Sold Probability
X P(X)

0 1/10

1 2/10
2 3/10

3 2/10
4 2/10
•Step 1

Find the mean of the probability

distribution using the formula

µ = ∑𝑋 ∙ 𝑃(𝑋)= 22/10 =2.2

•Step 2
X P(X) X ∙ P(X) X-µ
0 1/10 0 0 - 2.2 = -2.2
1 2/10 2/10 1 – 2.2 = -1.2
2 3/10 6/10 2 – 2.2 = -0.2
3 2/10 6/10 3 – 2.2 = 0.8
4 2/10 8/10 4 – 2.2 = 1.8
•Step 3
X P(X) X∙P(X) X-µ (X-µ)²
0 1/10 0 -2.2 4.84
1 2/10 2/10 -1.2 1.44
2 3/10 6/10 -0.2 0.04
3 2/10 6/10 0.8 0.64
4 2/10 8/10 1.8 3.24
•Step 4
X P(X) X∙P(X) X-µ (X-µ)² (X-µ)² ∙ P(X)

0 1/10 0 -2.2 4.84 0.484

1 2/10 2/10 -1.2 1.44 0.288
2 3/10 6/10 -0.2 0.04 0.012
3 2/10 6/10 0.8 0.64 0.128
4 2/10 8/10 1.8 3.24 0.648
•Step 5
X P(X) X∙P(X) X-µ (X-µ)² (X-µ)² ∙ P(X)

0 1/10 0 -2.2 4.84 0.484

1 2/10 2/10 -1.2 1.44 0.288
2 3/10 6/10 -0.2 0.04 0.012
3 2/10 6/10 0.8 0.64 0.128
4 2/10 8/10 1.8 3.24 0.648
𝝈𝟐 = ∑ 𝑿 − µ 𝟐
∙𝑷 𝑿 = 1.56
•Step 6

𝜎 = 1.56 = 1.25

The Variance of the Probability Distribution is

1.56

The Standard Deviation is 1.25