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Re: Some probability terms
Yes there is, and it's not small.
I think you know what a probability is, you are probably just not sure what EV is. EV for a discrete random variable (X) with values x1 x2 x3 ... xn is defined as: E(X) = Sum( xi* P(xi). (xi in this case is a value that X can take nad P(xi) is the probability of X taking on that value). For instance: If you throw a die the probability of it landing on a specific number (xi) is (1/6). Following from the definition: EV = E(X) = (1 x 1/6) +(2 x 1/6) +(3 x 1/6) +(4 x 1/6) +(5 x 1/6) +(6 x 1/6) = 3.5 You can think of this as a sort of balancing point in the distribution of possible outcomes. The EV you probably know best is the mean (average). And from it you can make a good common sense explanation of what it means. I hope you see the clear difference between a probability and EV. If it's unclear or you need further help, let me know. |
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