Expected Value (Leaving Cert Mathematics): Flashcards
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Definition of expected value
Definition of expected value
Average outcome from random experiment repeated many times
Formula for expected value
Formula for expected value
What does represent in the formula?
What does represent in the formula?
The expected value
What does represent in expected value formula?
What does represent in expected value formula?
Each possible outcome
What does represent in the formula?
What does represent in the formula?
The probability of each outcome
Method to calculate expected value
Method to calculate expected value
Multiply each outcome by its probability, then add all results
When is a game considered fair?
When is a game considered fair?
When expected payout = 0 (break even)
When is a game favourable?
When is a game favourable?
When expected payout > 0 (win in long run)
When is a game unfavourable?
When is a game unfavourable?
When expected payout < 0 (lose in long run)
What is the law of large numbers?
What is the law of large numbers?
Actual average approaches expected value over many trials
Must expected value be a possible outcome?
Must expected value be a possible outcome?
No, it doesn't need to be one of the actual outcomes
How to calculate expected profit in a game?
How to calculate expected profit in a game?
Expected payout minus cost to play