expected value practice

Front

What is the expected value in probability?

Back

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

Front

How do you calculate the expected value of a game?

Back

Multiply each outcome by its probability and sum all the results.

Front

What is the formula for expected value (EV)?

Back

EV = Σ (x * P(x)), where x is the outcome and P(x) is the probability of that outcome.

Front

If a coin flip has a 50% chance of winning $4 and a 50% chance of losing $3, what is the expected value?

Back

$0.50

Front

What is a probability distribution?

Back

A probability distribution is a function that describes the likelihood of obtaining the possible values that a random variable can take.

Front

How many ways can you arrange 3 runners from a group of 18?

Back

4,896 ways.

Front

What is the expected value of a lottery ticket that costs $6 with a prize of $800 and 1000 tickets?

Back

-$5.20.

Front

What does it mean if the expected value is negative?

Back

It indicates a loss on average over time.

Front

How do you find the mean of a probability distribution?

Back

By calculating the sum of all outcomes multiplied by their probabilities.

Front

What is the significance of the expected value in decision-making?

Back

It helps in assessing the average outcome of uncertain situations.