expected value


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ex·pect·ed value

(ĭk-spĕk′tĭd)
n.
1. A quantity expressing a typical or average value of a random variable.
2. The sum (for discrete variables) or integral (for continuous variables) of the product of a random variable with its probability density function, over its range of values.

expected value

n
(Statistics) statistics the sum or integral of all possible values of a random variable, or any given function of it, multiplied by the respective probabilities of the values of the variable. Symbol: E(X). E(X) is the mean of the distribution; E(X–c) = E(X)–c where c is a constant. Also called: mathematical expectation
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.expected value - the sum of the values of a random variable divided by the number of valuesexpected value - the sum of the values of a random variable divided by the number of values
statistics - a branch of applied mathematics concerned with the collection and interpretation of quantitative data and the use of probability theory to estimate population parameters
mean, mean value - an average of n numbers computed by adding some function of the numbers and dividing by some function of n
References in periodicals archive ?
The cutoff hand for positive expected value is 10-4 suited (10-handed), A-6 unsuited (8) and 7-5 suited (6).
where is the expected value of a claim as a function of its scope
Jones has lost an asset, the expected value of which is $100, and if the government takes that investment, it has injured Jones.
We did make a simple mathematical error in calculating the percentages in Figure 1, and the expected values were calculated incorrectly for Tables 1-3.
EV (Tax saving) = expected value of the tax saving from the Type 3 strategy
For a given value of P*, equilibrium entry occurs such that zero expected value is attained by the lowest valued entrant.
In other words, all possible outcomes--profits and losses in this example--are taken into account and contribute to the expected value according to the likelihood of their occurrence.
In the case of convex functions, the expected value of the ratio is greater than the ratio of the expected value:
Therefore, if the task force multiplies the NPV for high functionality and high interoperability and the probability for high functionality and high interoperability, the expected value, or in this case, probability adjusted financial impact, can be determined.
What might an expected value or estimated value be for 2005?
The second edition introduces the expected value of success (EVS) and the expected value for the portfolio (EVP) probabilistic measures of project value.
Expected value approach: The expected value of the cost of an environmental event is the estimate of the probability weighted-average over the range of all possible values where there are multiple possible outcomes, each with its own probability of occurrence.