Expected value is:
A) the average of each possible outcome of a future event, weighted by its probability of occurring.
B) the average probability of all possible outcomes of a future event occurring, weighted by each possible outcome individually.
C) the sum of all probabilities of all possible outcomes of a future event occurring.
D) None of these statements is true.

Question

Quizplus · Accepted Answer

Expected value is the average of each possible outcome of a future event, weighted by its probability of occurring. It is a way to measure the long-term value of a random variable or uncertain event.

Expected Value Is