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Narrator: Hello, again.
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So far, we have learned that the expected value
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is used when trying to predict future events.
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Sometimes the result of the expected value is confusing
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or doesn't tell us much.
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For instance, let us discuss a very famous example,
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throwing two standard six-sided dice
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and adding up the numbers on top.
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We have six options for what the result
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of the first one could be.
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Regardless of the number we roll,
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we still have six different possibilities
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for what we can roll on the second die.
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That gives us a total of six times six
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equals 36 different outcomes for the two rolls.
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For clarity, we can write out the results
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in a six by six table
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where we write the sum of the two dice.
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You can clearly see that we have repeating entries
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along the secondary diagonal
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and all diagonals parallel to it.
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Notice how seven occurs six times in the table.
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This means we have six favorable outcomes.
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As we already mentioned, there are 36 possible outcomes,
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so the chance of getting a seven
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equals six over 36, or just 1/6.
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Let's also compute the expected value for this event.
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Since we are dealing with numerical data,
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we should apply the same formula we used
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for the archery problem from the last lecture.
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To do so, we must assign an appropriate probability
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to each unique entry in the table.
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Just like with the sum being seven,
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we do that based on the number of times
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the number features in the table.
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If we do so, we are going to get the expected value,
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which ends up being seven.
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But how important is this value
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if the probability associated with it is only 1/6?
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The sum being equal to seven
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might be the most probable answer,
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but it is still very unlikely to occur.
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Thus, we cannot reasonably bet
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on getting a sum of exactly seven.
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Moreover, even though we are suggesting seven
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is the most probable sum, how can you be sure?
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What we can do is
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to create a probability frequency distribution.
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Simply put, a probability frequency distribution
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is a collection of the probabilities
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for each possible outcome.
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That's how I know that seven
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was the most probable sum of two dice.
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Usually, it is expressed with a graph or a table.
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To understand what
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a probability frequency distribution looks like,
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we are going to construct one right now.
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Using the sample space table we already constructed,
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for each unique sum, we record the amount of times
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it features in the table.
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This value is known as the frequency of the outcome.
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For example, getting a sum of eight
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in five different cases
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means that eight has a frequency of five.
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Okay, if we write out all the outcomes
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in ascending order, and the frequency of each one,
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we construct a frequency distribution table.
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By examining this table, we can easily see
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how the frequency changes with the results.
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Good job.
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At this point, we've done most of the work.
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The final step in getting
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the probability frequency distribution
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might be the most intuitive one.
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We need to transform the frequency
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of each outcome into a probability.
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Knowing the size of the sample space,
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we can determine the true probabilities for each outcome.
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We simply divide the frequency for each possible outcome
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by the size of the sample space.
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A collection of all the probabilities
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for the various outcomes
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is called a probability frequency distribution.
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As mentioned earlier,
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we can express this probability frequency distribution
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through a table or a graph.
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All right.
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On the graph, we see the probability frequency distribution.
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The x-axis depicts the different possible numbers
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of spades we can get,
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and the y-axis represents the probability
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of getting each outcome.
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When making predictions,
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we generally want our interval
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to have the highest probability.
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We can see that the individual outcomes
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with the highest probability are the ones
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with the highest bars in the graph.
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Usually, the highest bars will form
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around the expected value.
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Thus, the values around it would also be the values
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with the highest probability.
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This suggests that if we want the interval
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with the highest probability,
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we should construct it around the expected value.
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Before we move on to the next section,
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we need to talk about the opposite of an event.
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The term we use in probability theory is the complement,
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and we are going to explain why it is so important
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in the next lecture.
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See you all there, and thanks for watching.
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