Expected value may be defined as
A) the probability that each outcome will occur.
B) the probability that each outcome will not occur.
C) the expected future benefit of selecting one alternative over another.
D) the average of all possible outcomes.
E) the weighted average of the outcomes with the probability of each outcome serving as the weight.

Question

Quizplus · Accepted Answer

Expected value is the weighted average of the outcomes with the probability of each outcome serving as the weight. It helps in evaluating the long-term success probability of an event or decision.

Expected Value May Be Defined as