Ootuväärtust

Ootuväärtust, a term of Estonian origin, translates to "expected value" in English. It is a fundamental concept in probability theory and statistics, representing the weighted average of all possible outcomes of a random variable. The weights used in this average are the probabilities of those outcomes occurring. Essentially, it is the long-run average outcome one would expect if an experiment were repeated a very large number of times.

To calculate the expected value of a discrete random variable, one multiplies each possible value by its corresponding probability and then sums these products. For a continuous random variable, the calculation involves integrating the product of the variable and its probability density function over its entire range. The expected value is not necessarily one of the possible outcomes, but rather a theoretical value that summarizes the central tendency of the distribution. It plays a crucial role in decision-making under uncertainty, risk assessment, and various fields such as finance, gambling, and scientific research, providing a benchmark for evaluating the average performance or outcome of a probabilistic process.