Explore expected value through interactive visualizations. See how probability weights combine with outcomes to produce the long-run average.
What is Expected Value?
Expected value is the long-run average value of a random variable over many repetitions. It represents the center or "expected" outcome, calculated as a probability-weighted average of all possible values.
Expected value calculations differ based on whether the random variable is discrete (countable outcomes) or continuous (infinite possible values in a range). Each requires different visualization approaches.
Expected value is fundamental in decision theory, finance, insurance, game theory, and risk assessment. It helps quantify average outcomes when dealing with uncertainty.