How to calculate the expected probability value

The expected value uses probabilities to determine an expected result, for example what the reward will be. The expected value multiplies the probability of each result by the possible result. For example, in a dice game, take out one, three or five pay € 0, take a two or four pay € 5, and take a six pays € 10. In the dice, the probability of drawing one in six is 1/6 each.

Steps to follow:

one

Write the probabilities and the results in a graph. Use the column on the left for the probabilities, the central column for the result and the column on the right for the probability of the time result. This provides a visual representation of mathematics.

two

Multiply each result by the probability. In the example, of one, three and five, multiply 0 € by 1/6, which is equal to zero each, the one of two and four, multiplies 5 € by 1/6, equivalent to 0.833 each, and for six, multiply € 10 for 1/6, which equals 1, 666.

3

Add all the figures calculated in step 2 to determine an expected value. In the example, 0 + 0 + 0 + 0.833 + 0.833 + 1.666 is equal to an expected value, or the expected payment of 3.33 €.