how to calculate expected value?

Question

help with knowing how to calculate expected value, and standard deviations. thank you

Answer 1

OK, this is adding returns. Say you pay a $1 for a raffle, with 1 $100 dollar prize. There are 500 tickets.

You have one chance in 500 for $100 dollars.

You take the chance to get the win ( .002 ) times the payoff (100)

and get .2 - twenty cents. Not a good deal.

In roulette, you can when 35:1 if you hit a number You have once shot in 38 ( assuming 0 and 00)
35:38
Even money on red 18/38

Doing this will rapidly show why casinos are favored by Indian Tribes and why Vegas has extremely expensive buffets at low cost.

Answer 2

Expected Value Economics

Answer 3

This Site Might Help You.

RE:
how to calculate expected value?
help with knowing how to calculate expected value, and standard deviations. thank you

Answer 4

expected value is the average possible value of x or the mean of a probablity distribution.
if the probablity of x1 is p1 and x2 is p2 etc the formula is x1*p1+x2*p2+...xn*pn
(the 1s, 2s and ns should be a subscript).

to find the varience, find the expected value then use the formula (x1-expected value)^2*p1+(x2-expected value)^2*p2+...(xn-expected value)^2*pn

the standard deviation is the square root of the varience.

i hope the way i typed the formulas isnt too confusing.

Answer 5

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