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. In this video, I show the formula of expected value, and compute the expected value of I find it more. How to find expected value by hand and in Excel using SUMPRODUCT.
How to find expected value - Pearl Wer
She wanted to make sure it was fair, so she took her die to school and rolled it times and kept track of how many times the die rolled each number. You play a gambling game with a friend in which you roll a die. Tips For situations in which there are many outcomes, you can create a computer spreadsheet to calculate the expected value from the outcomes and their probabilities. Over many many draws, the theoretical value to expect is 6. Betting Strategy Apr 20, Betting Strategy Mar 6, Standard Deviation for a Discrete Random Variable. Probability is the chance that each particular value or outcome may occur. If we use the probability mass function and summation notation, then we can more compactly write this formula as follows, where the summation is taken over the index i:. Get Free Newsletters Newsletters. Given a large number of repeated trials, the average of the results will be approximately equal to the expected value. Calculating the expected value EV of a variety of possibilities is a statistical tool for determining the most likely result over time. We then add these products to reach our expected value. Probability of Winning x Amount Won per Bet — Probability of Losing x Amount Lost per Bet. Take, for example, a normal six-sided die.
How to find expected value Video