Expectancy

Expectancy refers to the average outcome or value you can anticipate from a specific situation or set of circumstances, often calculated by multiplying the probability of an event by its possible payoff. For example, if there's a 50% chance of winning $100, the expectancy is $50 (0.5 x $100). It's a useful concept in decision-making and statistics because it helps evaluate the potential return or result over time, guiding choices based on likely outcomes rather than just potential gains or losses alone.