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

Expected Value

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.
Read More »2.2 Expected Value (Mean)