expected value (EV)

Popular Terms
Statistical concept aimed at helping executives make better decisions under conditions of uncertainty. It focuses on evaluation and qualification of the magnitude and nature of risk associated with a particular outcome, in order to decide if the risk is worth taking. Expected value is computed by adding together the individual expected values for each outcome. See also expected monetary value.

Use 'expected value (EV)' in a Sentence

Being able to accurately assess the expected value of a project will help you to figure out how much to invest in it.
18 people found this helpful
I wanted to learn what the expected value of the item would be once the new year began and the weather changed.
15 people found this helpful
Knowing the expected value of an investment or project can let you know if it is the correct risk to take.
14 people found this helpful

Email Print Embed