What is Expected Value?
In mathematics, the expected value (also known as the mean, expectation, or average) of a random variable is a measure of the central tendency or average outcome of that variable over many repetitions of an experiment.
Expected Value
Expected Value: Random variables are the functions that assign a probability to some outcomes in the sample space. They are very useful in the analysis of real-life random experiments which become complex. These variables take some outcomes from a sample space as input and assign some real numbers to it. The expectation is an important part of random variable analysis. It gives the average output of the random variable.
Table of Content
- What is Expected Value?
- Random Variables and Expectations
- Expectation
- Expected Value
- Properties of Expected Value
- Term Life Insurance and Death Probability
- Getting Data from Expected Value
- Expected Profit from Lottery Ticket
- Expected Value while Fishing
- Comparing Insurance with Expected Value
- Expected Value – Solved Examples