How to use Expected Value Calculator with example?
Example :
Find out the expected value from the table given below :
| x | p(x) |
|---|---|
| 10 | 0.4 |
| 11 | 0.2 |
| 12 | 0.2 |
| 13 | 0.1 |
| 14 | 0.1 |
Formula :
$$\text{EV}\;=\;\sum P(X_i)\;*\;X_i$$
Expected Value = 10(0.4) + 11(0.2) + 12(0.2) + 13(0.1) + 14(0.1)
Expected Value=4+2.2+2.4+1.3+1.4
$$\text{Expected Value}\;=\;11.3$$
