Enter the probability of an event occurring and the number of trials into the calculator to determine the expected value.

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## Expected Value Formula

The following formula is used to calculate an expected value.

EV = P(x) * n

- Where EV is the expected value of the expected number of successes
- P(x) is the probability of event x occurring
- n is the number of trials

To calculate the expected value, multiply the probability of the event occurring by the number of trials.

## Expected Value Definition

An expected value is the sum of the probability of an event occurring and the number of trials performed.

## Expected Value Example

How to calculate an expected value?

**First, determine the probability of the event happening.**This will be the probability of a given value, or the probability or a given even. For this example we will say there is a 25% chance of an event occurring.

**Next, determine the number of trials.**For this example we will say there will be 100 trials.

**Finally, calculate the expected value.**Calculate the expected number of events given the 25% chance and the 100 trials, so 100*.25 = 25 total expected.

## FAQ

**What does the expected value tell you in practical terms?**

The expected value provides a measure of the central tendency or average outcome of a random event based on its probabilities. It helps in predicting the long-term average outcome of repeated experiments or trials.

**How can expected value be applied in decision-making?**

Expected value can be crucial in financial, business, and personal decision-making processes. It allows individuals and organizations to evaluate the potential benefits and risks of different options, helping them to choose the one with the best expected outcome.

**Is the expected value always accurate in predicting outcomes?**

While the expected value offers a theoretical average of outcomes based on probability, actual results can vary, especially in a small number of trials. Over a large number of trials, the outcomes tend to converge towards the expected value, making it more accurate in predicting long-term results.