expected value

noun

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

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.

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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