**Expected value:**

The expected value is a generalization of the weighted average. Trading firms often use it to determine the expected profit.

**How to calculate it?**

Within this course, we will calculate it by multiplying each possible outcome by its probability and then summing all of those values. 

**Task example:**

We will work with the typical example: rolling a six-sided die.
1. The probability of each number occurring is 1/6.
2. Possible numbers to appear: 1, 2, 3, 4, 5, 6.
3. Expected value = 1 * 1/6 + 2 * 1/6 + 3 * 1/6 + 4 * 1/6 + 5 * 1/6 + 6 * 1/6 = 3.5

It means that if you roll a six-sided die an infinite number of times, the average value you will receive is `3.5`.

Expected Value