Expected value is exactly what you might think it means intuitively: the return you can expect for some kind of action, like how many questions you might get right. Similarly, the expected value can be thought of as the arithmetic mean of a set of numbers generated in exact proportion to their probability of. A simple explanation of the mean and expected value of a discrete random variable. A6 is the actual location of your x variables and f x is the actual location of your f x variables. Approximations for Discrete Distributions. Chinny84 Thanks for the clarification. That clears things up. Soon enough they both independently came up with a solution. A negatively skewed distribution is one in which the left-of-centre outcomes occur more frequently than the right-of-centre outcomes, and therefore the "tail" of low frequency outcomes goes out to the right. Observed data can be viewed as the values of a collection of independent identically distributed random variables. If yes, then what is the point of introducing a block buster online term? As Michael Clark states: Anybody can ask http://williamsvillewellness.com/blog/problem-gambler/ question Http://www.online-gambling.co.uk/disclaimer.asp can answer The best answers are voted up and rise to the top. A very important application of the expectation value is in the field of quantum mechanics. You might want to save your money! The expected value and the arithmetic mean are the exact same thing. For a step-by-step guide to calculating this, see: I didn't notice this subtle misuse of terminology. We will call this advantage mathematical hope. Stack Exchange Inbox Reputation and Badges. Sign up using Email and Password. Sign up using Facebook. The expected value is also known as the expectation deutschland medaillen, mathematical expectation earn to die part 2, EVaveragemean valuemeanor first moment. The last equality used the formula for a geometric progression . Calculate the expected value of binomial random variables including the expected value for multiple events using this online expected value calculator. The only difference between "mean" and "expected value" is that mean is mainly used for frequency distribution and expectation is used for probability distribution. Check out the Practically Cheating Statistics Handbook , which has hundreds more step-by-step explanations, just like this one! The expected value does not exist for random variables having some distributions with large "tails" , such as the Cauchy distribution. What is an intuitive explanation of expected value? Post as a guest Name.