How to Calculate an Expected Value. Expected value (EV) is a concept employed in statistics to help decide how beneficial or harmful an action might be. The expected value (or mean) of X, where X is a discrete random variable, is a weighted average of the possible values that X can take, each value being. we shall discuss two such descriptive quantities: the expected value and the . In statistics, one is frequently concerned with the average value of a set of data. Der bedingte Erwartungswert spielt eine wichtige Rolle in der Theorie der stochastischen Prozesse. By contrast, the variance is a measure of dispersion of the possible values of the random variable around the expected value. In particular, Huygens writes: Probability - 1 Variable Lesson 4: By calculating expected values, investors can choose the scenario most likely to give them their desired outcome. The law of the unconscious statistician applies also to a measurable function g of several random variables X 1 , That's not in the denominator. Figure out the possible values for X. If the outcomes x i are not equally probable, then the expected value stats average must be replaced with the free texas average, which takes into account the fact that some outcomes are more likely than the. So that's a factorial. Computing Computer programming Computer science Hour of Code Computer animation. All right, so then, where was I? So that's one way to think about it and why this might make a little intuitive sense.