Folder:
113 Math
File:
113.036 Statistics - Expected Value
Expected Value
Expected value is the probability weighted average of the possible outcomes. More probable outcomes will have more weight.
In finance, expected value is used a lot. E.g. "expected value of earnings per share", "dividend per share", "rate of return", etc
- E(X) = P(x_1)x_1 + P(x_2)x_2 + ... + P(x_n)x_n
Tags:
- statistics
- decision-making
Relevant:
- 113.023 Statistics - Variance, Standard Deviation
- 202011211245 Expected value and Economic Decision Making
- 202011211629 PV marginal utility
- 115.020.30.06 Reading 8 - 6. Expected Value, Variance, and Standard Deviation of a Random Variable
- 116.059 Life Lessons - Make your decisions as expected value calculations
- 113.036.01 Expected Value - example using insurance purchase decision
- 113.036.02 Expected Value - example for concert promoter and weather
- 113.036.03 Expected Value - example for workouts in a week
- 126.002 Decision Making - Economic Decision Making