Expected value

From CNM Wiki
Jump to: navigation, search

Expected value is weighted average of the outcomes of a decision with the probability of each outcome serving as the weight. Also called expected monetary value.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Expected value. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight. Also called expected monetary value.