Expected Value - Section 6.1

The standard deviation of a random variable is a measure of how much the values of the variable differ from the mean.

The expected value is the average of all possible values of a random variable, weighted by their probabilities.

Multiply each possible value by its probability and sum all the results.

A discrete random variable is one that can take on a countable number of values.

The annual number of sweepstakes winners from New York City.

E(X) = Σ [x * P(x)], where x is a value and P(x) is its probability.

It means that all values of the random variable are the same and there is no variability.

$0.50.

The mean is the same as the expected value and represents the average outcome.

The probability of an event is a measure of the likelihood that the event will occur, ranging from 0 to 1.