Expected Value Homework Help
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Expected Value plays a big part in Microeconomics. It can be very tough for you to deal with a homework assignment on this subject. At helpmeinhomework, we have tutors who are experts in offering high quality expected value homework help services.
What is Expected Value?
Expected Value (EV) means an anticipated value for any specified investment. The EV, in probability analysis and statistics, is determined by multiplying all possible results by the possibility of every result, and the summation of all the values. Calculation of the anticipated values can let investors pick the situation that is likeliest to provide them with the result that they desire.
A process for computing the Expected Value of an investment opportunity is Scenario analysis. It makes use of multivariate models and estimated probabilities for examining all the possible results for a suggested investment. Scenario analysis is also useful for investors to decide whether they are undertaking suitable risk, considering the possible result of the investment.
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Why is it Important?
Expected Value (EV) is very important in the field of Microeconomics. The logic used in EV can be used for finding the answers to more complex issues. The Expected Value of a random variable is an assessment of the center of the distribution of the variable.
The EV is essentially the average long-term value of a random variable. The long-term variable’s average value, due to the law of large numbers, converges to the Expected Value once the total repetitions reach infinity.
The Expected Value is also referred to as the First Moment, Mean or Expectation. The calculation of EV can be done for:
- Multiple continuous variables
- Multiple discreet variables
- Single continuous variables
- Single discreet variables
Integrals have to be used for continuous variable scenarios.
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