The formula for expected value (EV)is ________.
A)interest rate × probability
B)income × probability
C)cost of risk × probability
D)cost of risk / probability
E)income / probability

Question

Quizplus · Accepted Answer

The expected value (EV) is calculated by multiplying each outcome by the probability of that outcome, then adding those values together. This is most accurately represented by "income × probability," as income can be considered a general term for the outcome of interest.

The Formula for Expected Value (EV)is ________