Contents

- 1 How do you calculate expected value in economics?
- 2 What is an example of expected value?
- 3 How do we calculate cost?
- 4 How do you calculate observed and expected frequencies?
- 5 Which of the formula is correct for calculating expected frequency?
- 6 How do you calculate total cost in economics?
- 7 How do you calculate the expected value of a random variable?

## How do you calculate expected value in economics?

In statistics and probability analysis, the expected value is calculated **by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values**. By calculating expected values, investors can choose the scenario most likely to give the desired outcome.

## What is an example of expected value?

Expected value is **the average value of a random variable over a large number of experiments** . … So, for example, if our random variable were the number obtained by rolling a fair 3-sided die, the expected value would be (1 * 1/3) + (2 * 1/3) + (3 * 1/3) = 2.

## How do we calculate cost?

The formula for finding this is simply **fixed costs + variable costs = total cost**. Using the examples of fixed costs and variable costs given above, we would calculate our total cost as follows: $2210 (fixed costs) + $700 (variable costs) = $2910 (total cost).

## How do you calculate observed and expected frequencies?

**Expected Frequency = (Row Total * Column Total)/N**. The top number in each cell of the table is the observed frequency and the bottom number is the expected frequency. The expected frequencies are shown in parentheses.

## Which of the formula is correct for calculating expected frequency?

calculated by **multiplying the event's probability by the number of repeats**, e.g. rolling a 6 on a number cube in twenty-four turns: expected frequency = 1/6 x 24 = 4.

## How do you calculate total cost in economics?

The formula to calculate total cost is the following: **TC (total cost) = TFC (total fixed cost) + TVC (total variable cost)**.

## How do you calculate the expected value of a random variable?

For a discrete random variable, the expected value, usually denoted as or , is calculated using: **μ = E ( X ) = ∑ x i f ( x i )**