# Computing expected value

Expected Value for a Discrete Random Variable. E(X)=\sum x_i p_i. x_i= value of the i th outcome p_i = probability of the i th outcome. According to this formula. The formula for the expected value is relatively easy to compute and involves several multiplications and additions. By calculating expected values, investors can choose the scenario that is most likely to The expected value (EV) is an anticipated value for a given investment.