BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The expected value of a random variable is denoted by E[X]. The expected value can be thought of as the “average” value attained by the random variable; in fact, the expected value of a random variable is also called its mean, in which case we use the notation µX. (µ is the Greek letter mu.) xP(X = x).

Detailed explanation-2: -To find the expected value, E(X), or mean of a discrete random variable X, simply multiply each value of the random variable by its probability and add the products. The formula is given as E(X)==∑xP(x).

Detailed explanation-3: -In statistics and probability analysis, the expected value is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values. By calculating expected values, investors can choose the scenario most likely to give the desired outcome.

Detailed explanation-4: -For a discrete random variable the expected value is calculated by summing the product of the value of the random variable and its associated probability, taken over all of the values of the random variable.