# What is expected value

In this video, I show the formula of expected value, and compute the expected value of a game. The final. Printer-friendly version. Expected Value (i.e., Mean) of a Discrete Random Variable. Law of Large Numbers: Given a large number of repeated trials, the average. In probability theory, the expected value of a random variable, intuitively, is the long-run average value of repetitions of the experiment it represents. For example  ‎ Definition · ‎ General definition · ‎ Properties · ‎ Uses and applications. Knowing the expected value is not the only important characteristic one may top tablets to know about a set of discrete numbers: Your explanations on here are clear cut and easy to follow. The convergence is relatively slow: The expectation of X may be computed by. The formula, which does not require to be discrete or absolutely continuous and is applicable to any random variable, involves an integral called Riemann-Stieltjes integral. A useful formula, where a and b are constants, is: Let be a -dimensional random vector and denote its components by , Example Let be a random variable with support and probability mass function Its expected value is. However, the main result still holds:. Basic Expected Value Example To calculate the EV for a single discreet random variable, you must multiply the value of the variable by the probability of that value occurring. If x can be negative, existence of E E X: If belongs to , we write. Navigation Main page Contents Featured content Current events Random article Donate to Wikipedia Wikipedia store. When the absolute summability condition is not satisfied, we say that the expected value of is not well-defined or that it does not exist. A More Complicated Expected Value Example The logic of EV can be used to find solutions to more complicated problems.

### What is expected value Video

Excel 2010 Statistics 48: Accounting & Finance Examples of Expected Value & Standard Deviation

### What is expected value - Spielprinzip, die

Use 'expected value EV ' in a Sentence Being able to accurately assess the expected value of a project will help you to figure out how much to invest in it. Definition Let be a sample space , a probability measure defined on the events of and a random variable defined on. A very important application of the expectation value is in the field of quantum mechanics. The expectation of X satisfies: Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Broker Reviews Find the best broker for your trading or investing needs See Reviews. This does not belong to me. A very important application of the expectation value is in the field of quantum mechanics. Printer-friendly version Expected Value i. EV can be calculated for single discreet variables, single continuous variables, multiple discreet variables and multiple continuous variables. Pascal, being a mathematician, was provoked and determined to solve the problem once and for all. Probabilty Distribution for Number of Tattoos Each Student Has in a Population of Students Tattoos 0 1 2 3 4 Probability. Select the Correct Variable Type. The expected value plays important roles in a variety of contexts. In decision theoryand isosport particular in choice under uncertaintyan agent is described as making an optimal choice in the context of incomplete information. What are the Common Mistakes of New Managers? Because of the law of large numbersthe average value of the variable converges to the EV as the number of repetitions approaches infinity. Drei gutschein code value with empirical probabilities. Essentially, the EV is the long-term average value of the variable.

### What is expected value - Automaten

Definition Let be a sample space , a probability measure defined on the events of and a random variable defined on. Let be a discrete random variable. A fair six-sided die is tossed. Turning Data Into Information Lesson 3: In general, the expected value operator is not multiplicative, i.