expected value

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expected value

[ek′spek·təd ′val·yü]
(mathematics)
For a random variable x with probability density function ƒ(x), this is the integral from -∞ to ∞ of (x) dx. Also known as expectation.
For a random variable x on a probability space (Ω, P), the integral of x with respect to the probability measure P.
(systems engineering)
In decision theory, a measure of the value or utility expected to result from a given strategy, equal to the sum over states of nature of the product of the probability of the state times the consequence or outcome of the strategy in terms of some value or utility parameter. Abbreviated EV. Also known as expected utility (EU).
References in periodicals archive ?
Jones has lost an asset, the expected value of which is $100, and if the government takes that investment, it has injured Jones.
Similar to the UP lottery, the effects of changes in P* on individual expected values will depend upon the elasticity of entry.
This decision reflects the "risk-neutral" nature of using expected values, in that the technique weighs up the balance of the probabilities.
Therefore, if the task force multiplies the NPV for high functionality and high interoperability and the probability for high functionality and high interoperability, the expected value, or in this case, probability adjusted financial impact, can be determined.
Setting expected values takes time and effort and some knowledge of statistics.
Probabilistic models can also he applied if a more in-depth analysis of liabilities and potential variations from expected values is desired.
1 Assumptions About the Relationship Between the Laboratory Expected Values and the Value of the Measurand
However, most papers on warranty cost estimation concentrate on the expected value of the warranty cost under a warranty period in which the failed products are repaired free or with partial charge.
An even stronger result is available if one assumes that the expected value of producer's surplus net of cost of entry is zero in every industry due to entry by new firms.
031 in ten trials, so closely approximate the theoretical expected values.
Several assumptions are made to convert m, a, and b into estimates of the expected value and variance of the elapsed time required by the activity.
Adopts a broad perspective on risk, with focus on predictions and highlighting uncertainties beyond expected values and probabilities, allowing a more flexible approach than traditional statistical analysis.