What is Expected Value?
The Expected Value (EV) is the Predicted Value for using at any point in the future. This value is also known as expectation, the average, the mean or the first moment. This is mainly used in statistics and probability analysis.
This value is calculated by multiplying possible results by the likelihood of every result will appear and then take gross of all these values.
By calculating expected value, users can easily choose the scenarios to get their desired results. Expected value formula calculator does not deals with significant figures. To calculate significant figures, use Sig Fig Calculator.
Expected Value Formula
To calculate expected value, with expected value formula calculator, one must multiply the value of the variable by the probability of that value is occurring. For example, five players playing spin the bottle. Once you spin the bottle, it has an equal one-fifth chance to stop at first, Second, third, fourth or fifth player.
Random Variable gives its weighted average. Provide this information, the calculation is very simple. For weighted average calculations, try Average Calculator.
If you spin the bottle an infinite number of times, you’ll observe that the average value equals 3.0. It becomes easy to learn how to find expected value.
How to find Expected Value?
The formula used for how to find expected value for a number or set of numbers is defined as
Expected Value =
Sum of their associated probability * All possible outcomes
EV = Expected Value of an Opportunity
P(Xi) = Probability
Xi = All Possible Outcomes
This formula shows that for every value of X in a group of numbers, we have to multiply every value of x by the probability of that number occurs, by doing this we can calculate expected value.
In case if you want to calculate probability and not the expected value, Use this Probability Calculator for accurately finding the probability at run time.
Understanding the Expected Value
The Expected Value of a random variable always calculated as the center of distribution of the variable. Most importantly this value is the variables long-term average value. For only finding the center value, the Midpoint Calculator is the best option to try.
Expected Value is calculated for single discrete variables, multiple discrete variables, single continuous variables, and multiple continuous variables. Expected value calculator is used to calculate expected value of all type of variables.
By calculating expected values, expected outcomes of probabilities are calculated by a set of numbers and the individual probabilities sum up to 1 or 100%. Also, remember that none of the probabilities for any set of numbers is greater than 1.
This is because any events happenings probabilities can’t be greater than 100%. So that’s why if any of the event probability is greater than 1, calculator shows an error message. Every time the total possible result is 100%. Therefore, there is not a single possibility of having a probability greater than 1 in any event or total of all events.
Advantages of Expected Value
Measures center of the Probability distribution
Long term investment of variable
Reduces information to one possibility /answer
Allows us to anticipate future outcomes
Disadvantages of Expected Value
The risk rate is high as it ignores the risk
The difficulty for assessing probabilities of different results
Unacceptable for one-off decisions
What is Expected Value Calculator?
This online expected value calculator will help you to find the expected value swiftly and easily of a discrete random variable X. By using this calculator, you will get detailed solutions to your problems.
Also, you can understand how the algorithm is used by a calculator to find the discrete random variable’s expected value. Give the number of the probability of success and values of x, expected value calculator will notify you about the expected value for a discrete random variable.
How to Calculate Expected Value by using Expected Value Calculator?
This Expected Value Formula Calculator finds the expected value of a set of numbers or a number which is based on the probability of that number or numbers occur.
Enter all known values of Probability of x P(x) and the Value of x in white shaded boxes. Enter all values in numeric form and separated them by commas.
Click the “Calculate” button and results will represent the Expected Value.
We hope you liked this article and the functionality of our expected value calculator. It will not be difficult for you to know how to find the expected value. Please provide your valuable feedback. Cheers!