Expected Value

Lesson · Intermediate

Probability

E(X)=xxPr(X=x)E(X)=\sum_x x\,\Pr(X=x)

If X can take values

x1,x2,,xnx_1,x_2,\ldots,x_n

with probabilities

p1,p2,,pnp_1,p_2,\ldots,p_n

then

E(X)=x1p1+x2p2++xnpnE(X)=x_1p_1+x_2p_2+\cdots+x_np_n

where

p1+p2++pn=1p_1+p_2+\cdots+p_n=1

Expected value is the long-run average outcome if the experiment is repeated many times.