The expected value of a discrete random variable
A)is the outcome that is most likely to occur.
B)can be found by determining the 50% value in the c.d.f.
C)equals the population median.
D)is computed as a weighted average of the possible outcome of that random variable, where the weights are the probabilities of that outcome.

Question

Quizplus · Accepted Answer

The expected value of a discrete random variable is computed as a weighted average of the possible outcomes, where the weights are the probabilities of each outcome. This means that more probable outcomes are given more weight in the calculation of the expected value. Therefore, option D is the correct answer. Option A is incorrect because the expected value is not necessarily the most likely outcome; it is a measure of the average value we can expect to see over multiple trials. Option B is incorrect because the 50% value of the c.d.f. is not necessarily the same as the expected value. Option C is incorrect because the expected value is not necessarily the same as the population median.

The Expected Value of a Discrete Random Variable