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expected value

expected value
Noun
pl: expected values

This term is a technical expression used primarily in probability theory, statistics, and economics. It describes a theoretical average rather than a value that is guaranteed to occur in a single trial. For instance, the expected value of a die roll is 3.5, even though it is physically impossible to roll a 3.5.

In financial and decision-making contexts, it is used to quantify risk and reward by weighing potential gains against potential losses. It differs from the median or mode in that it is highly sensitive to extreme outliers, which can pull the expected value away from the most frequent outcome.

Meanings

Nounexpected value

The long-term average value of a random variable over a large number of trials, calculated as the sum of all possible outcomes weighted by their probabilities.

The expected value of a fair six-sided die roll is 3.5.

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Última actualización: May 2026Reportar un error