The ______ of an uncertain payoff is defined as the weighted average of all possible outcomes,where the probability of each outcome is used as the weights.
A)expected value
B)standard deviation
C)variance
D)skewness

Question

Quizplus · Accepted Answer

The expected value represents the average outcome that one can expect based on the probabilities of each possible outcome. It is calculated as the weighted average of all possible outcomes, where the probability of each outcome is used as the weight. The other options (B, C, and D) are measures of dispersion or asymmetry of a probability distribution and are not relevant for calculating the expected value.

The ______ of an Uncertain Payoff Is Defined as the Weighted