Expected Value Without the Jargon
intermediate 2 Min. LesezeitAktualisiert 21.6.2026
Combine probability and net results into one honest long-run average.
Combine probability and net results into one honest long-run average.
List every possible net result
EV includes both positive and negative net changes. Returning a stake is not the same as winning that amount as profit.
Weight results by probability
Multiply every net result by its chance, then add them. The result is an average over repetition, not a forecast for one round.
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Key takeaways
- Use net outcomes when calculating EV.
- EV summarizes repeated decisions.
- Two games with similar EV can have very different volatility.
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