Question

The weighted average of the possible values that a random variable X can assume, where the weights are the probabilities of occurrence of those values, is referred to as the:\

Answer 1

Answer: Expected value

Step-by-step explanation: The expected value of a random variable refers to a predicted variable which is obtained from the summation of the product of all possible values and the probability of occurrence of each value. The expected values gives the mean or average possible value over the cause of a certain experiment or scenario. It is thus the probability weighted average of all possible values or outcomes of an experiment.

The expected value could be represented mathematically as thus;

E(x) = [Σ(x * p(x)]

Where x = all possible values or outcomes of x;

p(x) = corresponding probability of each x value.