Expected Value

The expected value of a discrete random variable is the probability-weighted average of all possible values. In other words, each possible value the random variable can assume is multiplied by its probability of occurring, and the resulting products are summed to produce the expected value.

    \[E\left (X \right )=\sum_{i}^{j}x_{i}*p\left ( x_{i} \right )\]

where:

E (X) = expected value;

x = value in case event “x” happen;

p(x) = probability of occurring event “x”;

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