expected value

Mean of outcomes

Expected value is a statistical concept representing the average outcome of a random variable over many trials, calculated by multiplying each possible outcome by its probability and summing the results.

In gambling, the expected value of a fair coin flip for $10 is zero—you'll win as often as you lose.

In decision-making, expected value helps weigh choices: The expected value of that investment is negative once you factor in the risks.

statistical

mean

Average, or spiteful

variance · standard deviation · distribution · normal distribution · bell curve · random variable · discrete · continuous · moment · parameter

gambling

odds

Likelihood expressed numerically

stake · wager · bet · jackpot · winnings · losses · bankroll · casino · poker · blackjack

forecasting

projection

Something that extends outward

modeling · simulation · time series · trend · econometrics · extrapolation · baseline · confidence interval · decision-making · planning

investment

return

Go back again

dividend · capital gains · asset allocation · diversification · upside · downside · payoff · hurdle rate · IRR · valuation

Categories
Opposites
statistical measures of central tendency

expected valuemode

Way or method

median · variance · standard deviation · outlier · geometric mean

certainty vs. uncertainty in outcomes

expected valueknown quantity

Established, predictable element

surprise

decision-making frameworks

expected valueworst-case scenario

Most unfavorable possible outcome

downside risk · best-case scenario

Family

value, expect, expected, valuable, unexpected, expecting, expectation, expectant, unexpectedly

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G