Expected value (EV)
The average long-run result of a decision, weighing each outcome by its probability.
In depth
Expected value (EV) is the long-term average outcome of a decision, calculated by weighting each possible result by its probability. It provides a mathematical framework to assess the profitability of choices over repeated trials, distinguishing consistent gains from short-term variance. EV reflects probability-weighted averages rather than single-event results, guiding strategic evaluation in decision-making.
Chinese: 期望值 (EV)