Expected value is an easy topic to explain. the easiest but accurate definition for it is the average payoff. this means that is what you expect to obtain.
a common question is why does it make sense taht expected value is sometimes called the long-term average? well the answer is simple. it makes sense, because the expected jvalue will always be the smae in the long-term average.so expected value is what is supposed to happen and the long-term average explains and gets really close to what is expected.
another question is how would you claculate the expected value for a probability situation? the answer is first i will find the long-term average and then divide my average by the number of tries.
expected value is a very useful system, or strategy to apply always. because it will help you to determine your profit or what you will have after a period of time.
nicky!
ResponderEliminarI think you explained really well all the things about expected value... the question you answered were really helpfull and the pictures helped to understand the explanation
very nice work !!!! :)