A+ » VCE » Maths Methods U3 & 4 Master Notes » A4 Probability and Statistics » 2.2 Expected Value (Mean)

2.2 Expected Value (Mean)

Expected Value (Mean)

  • You already know what an average is. Expected value is similar in this sense (after all, it is known as mean too).
  • Since random variables have a list or range of possible outcomes with probabilities associated, we can determine the mean of the random variable, known as its expected value.
  • The formula for expected value is given by

E(X)=\sum_{x} x \cdot \operatorname{Pr}(X=x)=\sum_{x} x \cdot p(x)

where E(X) represents the expected value of X.

  • E(X) can also be denoted as the Greek letter \mu (mu), which means the mean of X.
This content is for Master Notes MM members only. Unlock the content by signing up for a membership level - quick and easy!
Log InSign Up