expected value


Definition of expected value

1 : the sum of the values of a random variable with each value multiplied by its probability of occurrence
2 : the integral of the product of a probability density function of a continuous random variable and the random variable itself when taken over all possible values of the variable

Examples of expected value in a Sentence

Recent Examples on the Web Buerger compared the estimated $500,000 values of properties on Hawthorne Hill to the subdivision’s lower expected values. Eddie Morales, Milwaukee Journal Sentinel, "Waukesha's plan commission approves plans for an 80-acre subdivision; construction to begin in 2020," 30 Apr. 2020 The lean is toward the Pelicans (-167), but there is better expected value on the spread. Joe Williams, USA TODAY Sportsbook Wire, "Denver Nuggets at New Orleans Pelicans odds, picks and best bets," 24 Jan. 2020 There’s been widespread agreement among academics and practitioners for decades that investors can expect value stocks to outpace growth over time. Washington Post, "Don’t Count Out Value Investing Despite Growth’s Spurt," 5 Aug. 2019 Scott explained that the conference is loath to lock up a growing asset (the media rights) into the next decade because of its expected value on the open market. Jon Wilner, The Mercury News, "Pac-12 media strategy: To sell (ownership) or not to sell: Industry analysts weigh in," 29 Aug. 2019 Each circle represents a Fed official’s expected value of the federal-funds rate for the corresponding year or time period. Nick Timiraos, WSJ, "Fed Faces Unfamiliar Dilemma With Rate Projections," 17 June 2019 Every quarter, the central bank produces a chart of 19 officials’ individual projections for interest rates, with a dot representing each person’s expected value of the Fed’s benchmark rate in coming years. Nick Timiraos, WSJ, "Fed Officials Wrestle With a ‘Dot Plot’ Dilemma," 18 Mar. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'expected value.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of expected value

1915, in the meaning defined at sense 1

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The first known use of expected value was in 1915

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Cite this Entry

“Expected value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/expected%20value. Accessed 28 Feb. 2021.

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