Expected Value

Expected value is a concept used to determine the average outcome of a situation when considering all possible results and their likelihood. In general knowledge contexts, it's like calculating the "weighted average" of different scenarios. For example, if you play a game where you could win $10 with a 50% chance and lose $5 with a 50% chance, the expected value helps you understand what you can anticipate over time. It combines both the potential gains and losses, providing insight into whether an option is favorable or not, based on its probabilities and outcomes.