The formula for the expected value is relatively easy to compute and involves several multiplications and additions. Identify all possible outcomes. Calculating the expected value (EV) of a variety of possibilities is a statistical tool for determining the most likely result over time. Definition of expected value & calculating by hand and in Excel. Includes video. Find an expected value for a discrete random variable.
Calculating expected value Video
Expected Value Formula Suppose random variable X can take value x 1 with probability p 1value x 2 with probability p 2and so on, up to value x k with probability p k. The mean is the average. Navigation menu Personal tools Not logged in Talk Contributions Create account Goodwood racing dates in. But if you roll the die a second time, you must accept the value of the second roll. By Andale September 26, DefinitionsProbability 2 Comments. The probability of the outcomes usually depends on many external factors.