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
Graph:
- 113.036 Statistics - Expected Value to 113.023 Statistics - Variance, Standard Deviation
- 113.036 Statistics - Expected Value to 115.020.30.06 Reading 8 - 6. Expected Value, Variance, and Standard Deviation of a Random Variable
- 113.036 Statistics - Expected Value to 116.059 Life Lessons - Make your decisions as expected value calculations
- 113.036 Statistics - Expected Value to 113.036.01 Expected Value - example using insurance purchase decision
- 113.036 Statistics - Expected Value to 113.036.02 Expected Value - example for concert promoter and weather
- 113.036 Statistics - Expected Value to 113.036.03 Expected Value - example for workouts in a week
- 106.008 About me - Equity and Asymmetry to 113.036 Statistics - Expected Value
- 113.023 Statistics - Variance, Standard Deviation to 113.036 Statistics - Expected Value
- 113.036.01 Expected Value - example using insurance purchase decision to 113.036 Statistics - Expected Value
- 113.036.02 Expected Value - example for concert promoter and weather to 113.036 Statistics - Expected Value
- 113.036.03 Expected Value - example for workouts in a week to 113.036 Statistics - Expected Value
- 113.038.09 Probability - Total probability rule for expected value to 113.036 Statistics - Expected Value
- 116.101 Life Lessons - Expected value for a startup to 113.036 Statistics - Expected Value
- 126.001 Decision Making - Expected Value to 113.036 Statistics - Expected Value
- 126.008 Decision Making - Think in terms of probabilities to 113.036 Statistics - Expected Value