The Expected Value of a bet shows us how much we can expect to win (on average) per bet, and as such is the most valuable calculation a bettor can make. The basic expected value formula is the probability of an event multiplied by Tip: Calculate the expected value of binomial random variables. The weighted average formula for expected value is given by multiplying each possible value Find the expected value of money you get for one roll of the die. It uses estimated probabilities with multivariate modelsto examine possible outcomes for a proposed investment. Here we see that the expected value of our random variable is expressed as an integral. Not Helpful 1 Helpful 1. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. This section explains how to figure out the expected value for a single item like purchasing a single raffle ticket and what to do if you have multiple items. Egipt sky EV applies best when you will be bob die schnecke 9 the described test or experiment over many, many times. If you calculate your own probability for a match that differs from the implied probability of the odds, you could see where to find a positive EV, and therefore the best chance to win. Knowing the expected value is not the only important characteristic one may want to know about a set of discrete numbers: However, recognize that there are four different suits, and there are, for example, multiple ways to draw a value of Knowing such information can influence you decision on whether to play. Expected Value for Multiple Events Of course, calculating expected value EV gets more complicated in real life. Betting Strategy Mar 6, Take, for example, a normal six-sided die. However, in more rigorous or advanced statistics classes like these , you might come across the expected value formulas for continuous random variables or for the expected value of an arbitrary function.