Strong-form efficiency exists if all bets have expected values equal to one minus the takeout rate (Thaler and Ziemba ).
The expected values of a Kentucky Lotto ticket may seem somewhat low, however, Kentucky offered volume discounts on lotto tickets that were not available in the other two states.
Similar to the UP lottery, the effects of changes in P* on individual expected values will depend upon the elasticity of entry.
The effect of price changes on individual expected values is summarized as:
This decision reflects the "risk-neutral" nature of using expected values
, in that the technique weighs up the balance of the probabilities.
Therefore, if the task force multiplies the NPV for high functionality and high interoperability and the probability for high functionality and high interoperability, the expected value
, or in this case, probability adjusted financial impact, can be determined.
One of these is setting expected values
in the analytical procedures portion of an audit or review.
None of the methods allows for a rigorous evaluation of variation from expected values
or leaves much room for negotiation where there is more than one interested party.
2, we discuss two assumptions, labeled as Assumption I and Assumption II, about the relationship between the laboratory expected values
031 in ten trials, so closely approximate the theoretical expected values
Adopts a broad perspective on risk, with focus on predictions and highlighting uncertainties beyond expected values
and probabilities, allowing a more flexible approach than traditional statistical analysis.
Extrapolating from its success in dealing with day-to-day risks, many risk managers assess risk by way of averages, or what are more technically known as expected values