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These are the user uploaded subtitles that are being translated: 1 00:00:03,300 --> 00:00:04,590 Narrator: Hello, again. 2 00:00:04,590 --> 00:00:06,990 So far, we have learned that the expected value 3 00:00:06,990 --> 00:00:10,470 is used when trying to predict future events. 4 00:00:10,470 --> 00:00:13,170 Sometimes the result of the expected value is confusing 5 00:00:13,170 --> 00:00:15,210 or doesn't tell us much. 6 00:00:15,210 --> 00:00:18,570 For instance, let us discuss a very famous example, 7 00:00:18,570 --> 00:00:21,090 throwing two standard six-sided dice 8 00:00:21,090 --> 00:00:22,743 and adding up the numbers on top. 9 00:00:23,610 --> 00:00:25,770 We have six options for what the result 10 00:00:25,770 --> 00:00:27,690 of the first one could be. 11 00:00:27,690 --> 00:00:29,460 Regardless of the number we roll, 12 00:00:29,460 --> 00:00:31,470 we still have six different possibilities 13 00:00:31,470 --> 00:00:34,110 for what we can roll on the second die. 14 00:00:34,110 --> 00:00:36,780 That gives us a total of six times six 15 00:00:36,780 --> 00:00:40,293 equals 36 different outcomes for the two rolls. 16 00:00:41,130 --> 00:00:43,170 For clarity, we can write out the results 17 00:00:43,170 --> 00:00:45,090 in a six by six table 18 00:00:45,090 --> 00:00:47,880 where we write the sum of the two dice. 19 00:00:47,880 --> 00:00:50,100 You can clearly see that we have repeating entries 20 00:00:50,100 --> 00:00:51,930 along the secondary diagonal 21 00:00:51,930 --> 00:00:53,853 and all diagonals parallel to it. 22 00:00:55,620 --> 00:00:59,100 Notice how seven occurs six times in the table. 23 00:00:59,100 --> 00:01:02,370 This means we have six favorable outcomes. 24 00:01:02,370 --> 00:01:06,120 As we already mentioned, there are 36 possible outcomes, 25 00:01:06,120 --> 00:01:08,130 so the chance of getting a seven 26 00:01:08,130 --> 00:01:12,573 equals six over 36, or just 1/6. 27 00:01:13,740 --> 00:01:17,310 Let's also compute the expected value for this event. 28 00:01:17,310 --> 00:01:19,530 Since we are dealing with numerical data, 29 00:01:19,530 --> 00:01:21,690 we should apply the same formula we used 30 00:01:21,690 --> 00:01:24,033 for the archery problem from the last lecture. 31 00:01:24,930 --> 00:01:28,290 To do so, we must assign an appropriate probability 32 00:01:28,290 --> 00:01:31,050 to each unique entry in the table. 33 00:01:31,050 --> 00:01:33,090 Just like with the sum being seven, 34 00:01:33,090 --> 00:01:35,310 we do that based on the number of times 35 00:01:35,310 --> 00:01:36,960 the number features in the table. 36 00:01:38,970 --> 00:01:42,210 If we do so, we are going to get the expected value, 37 00:01:42,210 --> 00:01:43,713 which ends up being seven. 38 00:01:46,410 --> 00:01:48,240 But how important is this value 39 00:01:48,240 --> 00:01:51,603 if the probability associated with it is only 1/6? 40 00:01:52,590 --> 00:01:54,240 The sum being equal to seven 41 00:01:54,240 --> 00:01:56,790 might be the most probable answer, 42 00:01:56,790 --> 00:01:59,850 but it is still very unlikely to occur. 43 00:01:59,850 --> 00:02:01,980 Thus, we cannot reasonably bet 44 00:02:01,980 --> 00:02:05,040 on getting a sum of exactly seven. 45 00:02:05,040 --> 00:02:07,860 Moreover, even though we are suggesting seven 46 00:02:07,860 --> 00:02:12,120 is the most probable sum, how can you be sure? 47 00:02:12,120 --> 00:02:13,620 What we can do is 48 00:02:13,620 --> 00:02:16,323 to create a probability frequency distribution. 49 00:02:17,220 --> 00:02:21,030 Simply put, a probability frequency distribution 50 00:02:21,030 --> 00:02:22,950 is a collection of the probabilities 51 00:02:22,950 --> 00:02:24,603 for each possible outcome. 52 00:02:25,950 --> 00:02:27,330 That's how I know that seven 53 00:02:27,330 --> 00:02:29,433 was the most probable sum of two dice. 54 00:02:31,500 --> 00:02:35,340 Usually, it is expressed with a graph or a table. 55 00:02:35,340 --> 00:02:36,210 To understand what 56 00:02:36,210 --> 00:02:38,820 a probability frequency distribution looks like, 57 00:02:38,820 --> 00:02:40,863 we are going to construct one right now. 58 00:02:42,300 --> 00:02:45,720 Using the sample space table we already constructed, 59 00:02:45,720 --> 00:02:48,630 for each unique sum, we record the amount of times 60 00:02:48,630 --> 00:02:50,490 it features in the table. 61 00:02:50,490 --> 00:02:53,583 This value is known as the frequency of the outcome. 62 00:02:54,510 --> 00:02:56,640 For example, getting a sum of eight 63 00:02:56,640 --> 00:02:58,260 in five different cases 64 00:02:58,260 --> 00:03:01,413 means that eight has a frequency of five. 65 00:03:02,340 --> 00:03:05,580 Okay, if we write out all the outcomes 66 00:03:05,580 --> 00:03:08,550 in ascending order, and the frequency of each one, 67 00:03:08,550 --> 00:03:11,163 we construct a frequency distribution table. 68 00:03:12,000 --> 00:03:14,610 By examining this table, we can easily see 69 00:03:14,610 --> 00:03:17,073 how the frequency changes with the results. 70 00:03:18,660 --> 00:03:19,860 Good job. 71 00:03:19,860 --> 00:03:22,800 At this point, we've done most of the work. 72 00:03:22,800 --> 00:03:23,910 The final step in getting 73 00:03:23,910 --> 00:03:25,920 the probability frequency distribution 74 00:03:25,920 --> 00:03:28,140 might be the most intuitive one. 75 00:03:28,140 --> 00:03:29,880 We need to transform the frequency 76 00:03:29,880 --> 00:03:32,133 of each outcome into a probability. 77 00:03:32,970 --> 00:03:35,010 Knowing the size of the sample space, 78 00:03:35,010 --> 00:03:38,580 we can determine the true probabilities for each outcome. 79 00:03:38,580 --> 00:03:41,880 We simply divide the frequency for each possible outcome 80 00:03:41,880 --> 00:03:43,653 by the size of the sample space. 81 00:03:44,580 --> 00:03:46,410 A collection of all the probabilities 82 00:03:46,410 --> 00:03:47,580 for the various outcomes 83 00:03:47,580 --> 00:03:50,373 is called a probability frequency distribution. 84 00:03:51,750 --> 00:03:52,920 As mentioned earlier, 85 00:03:52,920 --> 00:03:55,650 we can express this probability frequency distribution 86 00:03:55,650 --> 00:03:57,483 through a table or a graph. 87 00:03:58,860 --> 00:04:00,120 All right. 88 00:04:00,120 --> 00:04:04,170 On the graph, we see the probability frequency distribution. 89 00:04:04,170 --> 00:04:07,170 The x-axis depicts the different possible numbers 90 00:04:07,170 --> 00:04:08,670 of spades we can get, 91 00:04:08,670 --> 00:04:11,490 and the y-axis represents the probability 92 00:04:11,490 --> 00:04:12,693 of getting each outcome. 93 00:04:14,280 --> 00:04:15,600 When making predictions, 94 00:04:15,600 --> 00:04:17,279 we generally want our interval 95 00:04:17,279 --> 00:04:19,529 to have the highest probability. 96 00:04:19,529 --> 00:04:21,360 We can see that the individual outcomes 97 00:04:21,360 --> 00:04:23,400 with the highest probability are the ones 98 00:04:23,400 --> 00:04:25,800 with the highest bars in the graph. 99 00:04:25,800 --> 00:04:27,720 Usually, the highest bars will form 100 00:04:27,720 --> 00:04:29,880 around the expected value. 101 00:04:29,880 --> 00:04:33,090 Thus, the values around it would also be the values 102 00:04:33,090 --> 00:04:35,190 with the highest probability. 103 00:04:35,190 --> 00:04:37,440 This suggests that if we want the interval 104 00:04:37,440 --> 00:04:38,880 with the highest probability, 105 00:04:38,880 --> 00:04:41,553 we should construct it around the expected value. 106 00:04:43,350 --> 00:04:45,150 Before we move on to the next section, 107 00:04:45,150 --> 00:04:48,330 we need to talk about the opposite of an event. 108 00:04:48,330 --> 00:04:51,990 The term we use in probability theory is the complement, 109 00:04:51,990 --> 00:04:54,330 and we are going to explain why it is so important 110 00:04:54,330 --> 00:04:55,473 in the next lecture. 111 00:04:56,550 --> 00:04:58,953 See you all there, and thanks for watching. 8536

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