## Calculating expected value

Definition of expected value & calculating by hand and in Excel. Includes video. Find an expected value for a discrete random variable. 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. Expected Value for a Discrete Random Variable. E(X)=\sum x_i p_i. x_i= value of the i th outcome p_i = probability of the i th outcome. According to this formula. What you are looking for here is a number that the series converges on i. This explanation does help a little, I guess I just need to do it more often. Tools What links here Related changes Upload file Special pages Permanent link Page information Wikidata item Cite this page. How to calculate Expected Value Get to grips with a basic Expected Value formula Learn how to work out whether you should make a bet or not. Suppose random variable X can take value x 1 with probability p 1 , value x 2 with probability p 2 , and so on, up to value x k with probability p k. Calculating expected value and variance of a probability density function. All text shared under a Creative Commons License.