Expected Value - What is Expected Value

What is the probability that the laptop will need repairs?

• 15%

• 20%

• 25%

• 10%

Are you enjoying the video lesson?

• Yes

• No

What is the expected value?

• The weighted average of the values of the outcomes

• The average of all possible outcomes

• The sum of all possible outcomes

• The highest value among all outcomes

How do you calculate the expected value?

• Divide the total value by the number of outcomes

• Multiply the probability of each outcome by its value and add them up

• Add all the outcomes together

• Subtract the lowest outcome from the highest

What is the expected cost of repairs for the laptop?

• $50

• $20

• $30

• $40

Is it worth buying the warranty for the laptop?

• Yes, because the warranty is cheaper than the expected repair cost

• No, because the warranty is more expensive than the expected repair cost

• No, because the laptop will definitely not need repairs

• Yes, because the warranty covers all possible repairs