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Expected Value |
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Expected value The weighted average of a probability distribution. Also known as the mean value. Expected Value The return on an investment as estimated by an asset pricing model. It is calculated by taking the average of the probability distribution of all possible returns. To give a very simple example, a model might state that an investment has a 10% chance of a 100% return and a 90% chance of a 50% return. The expected rate of return is calculated as: Expected Value = 0.1(1) + 0.9(0.5) = 0.55 = 55%. It is important to note that there is no guarantee that the expected rate of return and the actual return will be the same. Statistically, the expected value is the mean value of the probability distribution. It is also called the expected rate of return. See also: Abnormal return. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| The guidelines and best practices for product metrics from EIA 632 are to identify and track TPMs to determine the success of the system; project the evolution of the parameter as a function of time toward the desired value at the completion of development; and to identify product metrics and their expected values that will affect the quality of the product and provide information toward satisfying acquirer and other stakeholder requirements, as well as derived requirements. One of these is setting expected values in the analytical procedures portion of an audit or review. With lags >5 days, the trends of expected values were relatively similar, with a peak around day 20, a decreasing trend after this date, and the expectation of [R. |
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