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Updated: Jan 19, 2026

Expected Value
01:15

Expected Value

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Forecasting the magnitude of the largest expected earthquake

Robert Shcherbakov1,2, Jiancang Zhuang3, Gert Zöller4

  • 1Department of Earth Sciences, University of Western Ontario, London, ON, N6A 5B7, Canada. rshcherb@uwo.ca.

Nature Communications
|September 8, 2019
PubMed

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Expected Value01:15

Expected Value

The expected value is known as the "long-term" average or mean. This means that over the long term of experimenting over and over, you would expect this average. The expected average is represented by the symbol μ. It is calculated as follows:
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Orders of Magnitude01:15

Orders of Magnitude

The order of magnitude of a number is the power of 10 that most closely approximates it. Thus, the order of magnitude estimates the scale (or size) of its value. To find the order of magnitude of a number, take the base-10 logarithm of the number and round it to the nearest integer. Then the order of magnitude of the number is simply the resulting power of 10.
The order of magnitude is simply a way of rounding numbers consistently to the nearest power of 10. This makes doing rough mental math...
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Expected Income, Expected Utility, and Risk Aversion II01:19

Expected Income, Expected Utility, and Risk Aversion II

John is evaluating a job offer from a company where his income will be uncertain. If the company performs well, John will earn an annual income of  $81,000; otherwise, he will earn $49,000. It is assumed that either outcome has an equal chance, assigning a probability of 0.5 to each. This results in an expected income of $65,000. His decision-making is affected by the diminishing marginal utility of income. John evaluates his options based on their utility. Expected utility accounts...
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Determination of Expected Frequency01:08

Determination of Expected Frequency

Suppose one wants to test independence between the two variables of a contingency table. The values in the table constitute the observed frequencies of the dataset. But how does one determine the expected frequency of the dataset? One of the important assumptions is that the two variables are independent, which means the variables do not influence each other. For independent variables, the statistical probability of any event involving both variables is calculated by multiplying the individual...
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Expected Income, Expected Utility, and Risk Aversion I01:08

Expected Income, Expected Utility, and Risk Aversion I

Consider a hypothetical example where John is evaluating a job offer from a company. If the company performs well, John will earn an annual income of  $81,000; if it performs poorly, he will earn $49,000. Each outcome is equally likely, with a probability of 0.5. These two outcomes are mutually exclusive, meaning only one can occur and their probabilities sum to 1. The amounts of $81,000 and $49,000 represent the payoffs associated with each outcome.John's expected income is the average...
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