# Calculating expected value

Identify all possible outcomes. Calculating the expected value (EV) of a variety of possibilities is a statistical tool for determining the most likely result over time. Expected Value for a Discrete Random Variable. E(X)=\sum x_i p_i. x_i= value of the i th outcome p_i = probability of the i th outcome. According to this formula. In probability theory, the expected value of a random variable, intuitively, is the long-run .. This is because an expected value calculation must not depend on the order in which the possible outcomes are presented, whereas in a conditionally. What is the 'Expected Value' The expected value EV is an anticipated value for a given investment. Cookies make wikiHow better. This division is the only equitable one when all strange circumstances are eliminated; because an equal degree of probability gives an equal right for the sum hoped for. Click an empty cell. They were very pleased by the fact that they had found essentially the same solution and this in turn made them absolutely convinced they had solved the problem conclusively.