Coder74 said:
Expected value is a mathematical concept that represents the average outcome of a probability distribution. It is calculated by multiplying each possible outcome by its corresponding probability and summing all of these products together.
Expected value is important because it helps us make decisions based on probabilities. By calculating the expected value, we can determine the most likely outcome of a situation and make informed choices.
To find expected value, multiply each possible outcome by its corresponding probability and then sum all of these products together. The formula for expected value is: E(x) = Σ(x * P(x)), where x represents the possible outcomes and P(x) represents the corresponding probabilities.
Expected value is a theoretical calculation based on probabilities, while actual value is the real outcome of a situation. Expected value helps us make predictions, while actual value tells us what actually happened.
Yes, expected value can be negative. This means that the potential outcomes have a greater chance of resulting in a loss rather than a gain. It is important to consider both positive and negative expected values when making decisions.
