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Hi John!
In the revision kit, one answer for expected values in an MCQ is that:
EV indicate what an outcome is likely to be in the long term, if the decision is repeated many times over.1. What does “if the decision is repeated many times over”?
I do explain this in my lectures!!!
Suppose that there are two outcomes – $100 and $200 – and each has a 0.5 probability of occurring. So an expected value of $150.
If it is just done once, then the outcome will either be $100 or it will be $200. It will not be $150.
If it is repeated many times, then sometimes it will be $100 and sometimes it will be $200. On average the outcome will be $150.
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