The term "expected value" refers to:
A) A best guess of an outcome.
B) A most pessimistic estimate of an outcome.
C) An estimate that takes into account the probabilities of all possible outcomes.
D) The outcome experienced in the last time period.

Question

Quizplus · Accepted Answer

Expected value is a statistical concept that calculates the average outcome of a random event when the process is repeated many times. It incorporates the probabilities of all possible outcomes to provide a single number that represents the long-term average result if the experiment were repeated indefinitely.

The Term "Expected Value" Refers To