List all possible outcomes
Assign a probability to each outcome
Assign a value to each outcome
Multiply each outcome’s value by its probability
Add all the results together
Use the formula: Expected Value = Σ(value × probability)
List all possible outcomes
Assign a probability to each outcome
Assign a value to each outcome
Multiply each outcome’s value by its probability
Add all the results together
Use the formula: Expected Value = Σ(value × probability)