The expected value plays important roles in a variety of contexts. In regression analysis, one desires a formula in terms of observed data that will give a "good" Definition · General definition · Properties · Uses and applications. Simple explanations for the most common types of expected value formula. Includes video. Hundreds of statistics articles and vidoes. Free help. The expected value plays important roles in a variety of contexts. In regression analysis, one desires a formula in terms of observed data that will give a "good" Definition · General definition · Properties · Uses and applications. By calculating expected values, investors can choose the scenario most likely to give them their desired outcome. Get Free Newsletters Newsletters. Formula for the Expected Value of a Binomial Random Variable The formula for the Expected Value for a binomial random variable is: Calculating the expected value EV of a variety of possibilities is a statistical tool for determining the most likely result over time. Not Helpful 1 Helpful 1. As with any EV problem, you must begin by defining all possible outcomes. To find the partial value due to each outcome, multiply the value of the outcome times its probability. Roughly speaking, this integral is the limiting case of the formula for the expected value of a discrete random variable Here replaces the probability of and the integral sign replaces the summation sign. This gambling game has asymmetric values assigned to the various rolls, according to the rules of the game. Latest Videos How Companies Use Initial Coin Offerings Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Knowing such information can influence you decision on whether to play. Calculate the expected value of binomial random variables including the expected value for multiple events using this online expected value calculator. Already answered Not a question Bad question Other.