Discrete Scenarios
In gambling and probability theory, there is usually a discrete set of possible outcomes. In this case, expected return is a measure of the relative balance of win or loss weighted by their chances of occurring.
For example, if a fair die is thrown and numbers 1 and 2 win $1, but 3-6 lose $0.5, then the expected gain per throw is
- E(R) = 1/3 × 1 - 2/3 × 0.5 = 0 .
Read more about this topic: Expected Return
Famous quotes containing the words discrete and/or scenarios:
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