Description

For a probabilistically distributed quantity the expected value is the mean or weighted average of the possible values.


 

Parameters:

(1) number of different values

(2) value

(3) probability for each value (which is used to weight the value)

 

expected value =

= SUM((value) * (probability of that value))

 

where:

• The sums of all the probabilities must add up to 1.

 


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