The expected value is
A)the total of all possible outcomes.
B)the arithmetic average of all possible outcomes.
C)the average of all possible outcomes weighted by their respective probabilities.
D)the total of all possible outcomes divided by the number of different possible outcomes.

Question

Quizplus · Accepted Answer

The expected value is the weighted average of all possible outcomes, taking into account the probability of each outcome. It is calculated by multiplying each possible outcome by its probability and then summing up all the products. Therefore, the correct option is C, the average of all possible outcomes weighted by their respective probabilities.

The Expected Value Is