Question

1. when calculating expected values, what does the impact of outcome refer to?

a. the speed at which the outcome occurs
b. the emotional effect of the outcome
c. the probability of the outcome happening
d. the quantitative effect or consequence of the outcome

Explanation:

When calculating expected values in probability (a sub - field of Mathematics/Statistics), the formula is \(E(X)=\sum_{i}x_ip_i\), where \(x_i\) is the value (quantitative effect or consequence) of the outcome and \(p_i\) is the probability of the outcome. The "Impact of Outcome" refers to the \(x_i\) part, which is the quantitative effect or consequence of the outcome.

• Option a: Speed is not a factor in expected value calculations.
• Option b: Emotional effect is not relevant in the mathematical formula for expected value.
• Option c: The probability of the outcome is \(p_i\) in the formula, not the "Impact of Outcome".

Answer:

d. The quantitative effect or consequence of the outcome