Expected value

In probability theory, the expected value of a random variable , denoted or , is a generalization of the weighted average, and is intuitively the arithmetic mean of a large number of independent realizations of . The expected value is also known as the expectation, mathematical expectation, mean, average, or first moment. Expected value is a key concept in economics, finance, and many other subjects.

Expected value

In probability theory, the expected value of a random variable , denoted or , is a generalization of the weighted average, and is intuitively the arithmetic mean of a large number of independent realizations of . The expected value is also known as the expectation, mathematical expectation, mean, average, or first moment. Expected value is a key concept in economics, finance, and many other subjects.