Expected Value Extended

There are many ways to calculate the expected value. I covered one approach in a previous blog. You can also multiple your X value by the corresponding probability. So suppose you were given the following:

X    P(x)

1      .20

2      .40

3      .40

And   you wanted the expected value of X you would obtain E(X)=1*.20+2*.40+3*.40= 0.20+0.8+1.2=2.2 . It depends on your probability distribution. There are several equations depending on the scenario.


-Mooore to follow- Amy



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