Expected value

Expected Value
The value of the possible outcomes of a variable weighted by the
probabilities of each outcome
Expected value ...

expected value
The sum of future amounts multiplied by their respective probabilities of occurrence.
» For more clarity on this term: ...

expected value
weighted average using the probabilities as weights. For decisions involving uncertainty, the concept of expected value provides a rational means for selecting the best course of action.

The concept of expected value generalizes to multiple dimensions. Consider a random
vector X:
[3]
Its mean vector, denoted or E(X), is simply the vector of the expected values of its components: ...

EXPECTED VALUE - The weighted average of possible outcomes, with the weights being the probabilities of...
EXPECTED VALUE OF PERFECT INFORMATION - The expected value if the future uncertain outcomes could be kn...

Expected value
The payoff of an event multiplied by the probability of its occurring summed over all possible events.
Expiry price
See exercise price ...

Expected Value
A measure of the central tendency/location of a random variable. Thus, E(X) = µ ...

Expected value of perfect information
The expected value if the future uncertain outcomes could be known minus the expected value with no additional information.

expected value: The expected value of a random variable is the mean of its distribution.
In its technical use this word does not have exactly the same meaning as in ordinary English.

Expected Value
A statistical term denoting a predicted value of a future variable.
Expiration Date
The date on which the right to buy or sell a security under an option expires.

Expected value The weighted of a .
Expense ratio The percentage of the assets that were spent to run a (as of the last annual statement).

Expected Value - Is viewed as an anticipated, theoretical or fair value for an instrument.
Expected Volatility - Is the forward looking aspect of volatility or variability. It compares to historic and current or implied volatility.

Expected Value
The value of each possible outcome of the event multiplied by the probability of that outcome occurring. All possibilities must be considered, since the sum of probabilities must be 1.

The expected value or mean of a probability distribution of returns. The weighted arithmetic average of all possible outcomes, where the weights are the probabilities that each outcome will occur.

and it has expected value μ = Î"âˆ'1. Therefore the variance is equal to:
So for an exponentially distributed random variable σ2 = μ2.
Fair dice ...

where E (Vy) = expected value of a 'y' year old person's human capital T = the person's retirement age Py (t) = probability of the person leaving the organisation I(t) = expected earnings of the person in period I r = discount rate ...

Expected value The weighted average of a probability distribution. Also known as the mean value.

Mean The expected value of a random variable. Arithmetic average of a sample. Mean of the sample The arithmetic average; that is, the sum of the observations divided by the number of observations.

Law of large numbers The mean of a random sample approaches the mean (expected value) of the population as the sample grows.

The expectation of a variable is the same as its expected value, and is also used with both meanings.
Expected value
1. The mathematical expected value of a random variable.

Stopping curve A curve showing the refunding rates for different points in time at which the expected value of refunding immediately equals the expected value of waiting to refund.

In the ‘40 Metzler2 suggested that the expected value of a variable in t depends on its value in t-1 and, on a certain correction parameter taking into account the dynamic of the variable between t-2 and t-1:
(1) ...

The mathematical definition of the law of large numbers is that a random sample approaches the expected value of the population as the sample grows. For example, flip a coin ten times and it might come up heads every time.

An "expected value" net of taxes can be worth more or less than it initially appears based on structure (asset vs. stock transaction), terms (cash, notes, stock, contingent payments, etc.), ...

Simple expected value math says yes, but most people would consider it too risky and would not play. It would be a real downer to lose half your net worth on a coin toss. (If in doubt, a male could ask his wife, she would likely have no doubts).

Also known as the mean value. Expected value of perfect information
The expected value if the future uncertain outcomes could be known minus the expected value with no additional information.
Expense ratio ...

A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.
Popular terms ...

It is where the expected value is going to be determined by data at least in part independent of the entity's accounting system, ...

Stopping curve
Definition: [crh] A curve showing the refunding rates for different times at which the expected value of refunding immeDefinition: diately equals the expected value of waiting to refund.

The process of estimating the expected value of a portfolio after a given period of time, assuming specific changes in the values of the portfolio's securities or key factors that would affect security values, such as changes in the interest rate.

Base Case: A cash flow projection with variables measured at their expected values.
Base Load Plant: A power plant that runs all the time, as opposed to a plant that is used only in times of peak electricity requirements (a peaking plant).

The mean of a random sample approaches the mean (expected value) of the population as sample size increases.
Lead
Payment of a financial obligation earlier than is expected or required.

This measures the variability of the return relative to the expected value of the return. Given a fixed level of expected return, the strategy that generates the minimum variance is preferred. To achieve this, the optimal diversification among ...

Risk-adjusted profitability
A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.

This method of depreciation takes the initial cost of the asset, including any costs required to bring it into use, less the expected value at the end of it's life, and divides it by the number of accounting periods.

You can estimate the value of a company in the same industry sector and with similar financial and operational attributes using the EBITDA valuation multiples. For example, to calculate the expected value of your business, ...

The adjustment is not simply necessary because of higher upside risk, it is necessary because that higher upside risk increases the expected value.

Usually the probability and some assessment of expected harms must be combined into a believable scenario combining risk, regret and reward probabilities into expected value.

The standard deviation is a statistical measure that is commonly viewed as a reasonable measure of risk. It measures the variability of a random variable around its expected value or mean, and equals the square root of the variance.

STANDARD DEVIATION:  A measure of the dispersion in outcomes around the expected value.

Mean-Variance Analysis quantifies the notions of risk and expected return by applying concepts from statistics. The values of assets are taken to be random variables with various expected values ...

or dividends, calculated from a probability distribution curve of all possible rates of return. In general, if an asset is risky, the expected return will be the risk-free rate of return plus a certain risk premium. Also called expected value.

Sometimes, besides reporting the EPS and Revenue for the past quarter, a company may also issue guidance (expected value) for the EPS and Revenue in coming quarter or coming years.

See also: Expense, Expected return, Banks, Funding, Values