expected value

Definitions

Economics

  • noun the future value of a certain course of action, weighted according to the probability that the course of action will actually occur. If the possible course of action produces income of £10,000 and has a 10 per cent chance of occurring, its expected value is 10 per cent of £10,000 or £1,000.

Health Economics

  • (written as Expected Value)
    The weighted average of all possible values of a variable, where the weights are probabilities.

Business

  • acronymEV
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