# 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).
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
So, its expected value [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] is also equal to [??]([mu], ..., [mu]) with probability 1, and thus, the equality that described that this estimate is unbiased takes the form
For winter wheat farmers with moderate risk aversion in Hyde County, S.D., we estimate that the expected value of claims payments is \$17.23 per acre under the coinsurance program above, but only \$17.22 under the indifferent deductible program with an 86% threshold, so the risk premium is \$0.01 per acre.
Jones has lost an asset, the expected value of which is \$100, and if the government takes that investment, it has injured Jones.
The membership function in set [EVI.sub.j], [u.sub.EVIj]([b.sub.Lj]), represents the degree to which [b.sub.Lj] approximates the maximum possible expected value ([b.sub.max]) and, thus, it reflects the possible expected values, [b.sub.Lj].
, [x.sub.n] are presumed to have normal sampling pdfs with unknown but equal expected values and variance-covariance matrix [[tau].sup.2] x Diag [[[sigma].sub.1.sup.2], ...
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.
negative expected values (such as Policy B in Example 3 above) prove to
Expected values refer to events that have not yet transpired.
"Expected values" are the account values that might be anticipated, based on the past performance of a company.
None of the methods allows for a rigorous evaluation of variation from expected values or leaves much room for negotiation where there is more than one interested party.
Each plan summarizes the disease process, medical care that may be prescribed, drug actions, diagnostic procedures, laboratory tests with expected values, and outcome criteria.

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