Statistics › Section D · Discrete random variables › Topic D.2
Expected value and standard deviation
A distribution lists everything a random variable can do; two numbers summarise it. The expected value is its balance point, the standard deviation its typical spread - together they underpin how games, insurance premiums and payouts are priced.
In this topic
- The distribution's centre and spread
- Expected value
- Worked example: is the game fair?
- Variance and standard deviation of a distribution
- Worked example: mean and SD of the green count
- Rules for means
- Rules for variances
- Worked example: transforming a profit
- Common mistakes to avoid
- Key takeaways
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